Globally, infrastructure investment deficits are in the billions. As infrastructure (e.g., roads, airports, tunnels, and bridges) continues to deteriorate, replacement costs are escalating. Infrastructure Projects/Funds will include:

• Transportation - toll roads & bridges, airports, ports, and railways
• Power - generation and distribution
• Water systems - delivery, recovery, and water treatment
• Social Assets – housing, stadiums, health care

Infrastructure investments are emerging as an attractive asset class. Many institutional investors are seeking steady cash flows from long-term investment products to meet the needs of the aging baby boomer population. Individual investors are also aggressively seeking alternative and secure investment income.

Investment dealers and commercial banks, private equity funds, pension funds, construction companies and even insurance companies are now entering this sector by acquiring and developing infrastructure assets, buying companies that own assets, or investing in funds that own portfolios of assets. The securitization of infrastructure is a logical next step to meet these demands.

Public-Private Partnerships (P3s) are increasingly being viewed as an alternative means of meeting the demand for infrastructure in Canada and around the world. The P3 model transfers some of the risks in the delivery of these projects to the private sector in order to access private sector resources and expertise. The private sector is compensated through performance-based contracts, which provide incentives to complete and properly maintain the assets, thus maximizing the value of taxpayer dollars.

egX will work with P3s to provide an alternative exit strategy upon completion of infrastructure projects. Once completed, an infrastructure project can be brought to market, allowing the private sector participants to be repaid earlier, thus freeing up their capital to participate in more infrastructure projects. Alternatively, the listing of existing revenue-generating infrastructure assets can provide governments with the funds needed to finance additional infrastructure projects that may not fit the P3 model.

The existence of an open, fair, and efficient market for real estate securities will support government P3 initiatives and encourage public participation in the funding process of infrastructure projects.

What does egX offer? egX can serve an important role in the delivery of infrastructure by providing this industry with access to capital, transparency and liquidity. egX will provide a marketplace for the listing and trading of infrastructure projects. As a result of this initiative, a whole new group of investors will gain access to infrastructure investments, thus increasing the pool of available capital. egX will offer liquidity for institutional and retail investors who seek short-term to medium-term infrastructure investments. Infrastructure investments add to the available asset mix and offer new products for the purpose of financial planning and portfolio diversification.

Download egX Canada's Infrastructure brochure.

For more information please contact:

Sean Curley
Senior Listings Analyst
Tel: 604-622-1033
Email: SCurley@egXCanada.com


*Forward looking information caution