Travel Diary Brazil: Corajoso e bonito

Market Updates | Market Watch | 28 August 2017

The latest instalment of our Infrastructure Travel Diary comes from Andrew Greenup, Deputy Head of Global Listed Infrastructure, who recently spent time in Brazil visiting infrastructure companies, assets, regulators and government bodies.

 

Highlights include: 

- Brazil has many social, political and economic challenges. Infrastructure investment is viewed as part of the solution.

- Risks to traffic and earnings forecasts for infrastructure assets are to the upside, as Brazil slowly emerges from its economic depression.

- New Greenfield projects, privatisations and distressed asset sales are creating a large pipeline of investment opportunities (~US$30 billion) for domestic and foreign players.

- These significant growth opportunities do not come risk free: potential headwinds include political scandals, 2018 elections, concession uncertainty and a slow legal system.

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