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Exploring infrastructure asset classes

Deloitte Corporate Finance’s Infrastructure series

Deloitte Corporate Finance’s Infrastructure series explores individual infrastructure asset classes in a selection of short articles. The articles include analysis of the asset class, comparison of key financial ratios globally as well as case studies/deal evaluation.

Franking credits - Who is right?

The valuation of franking credits for infrastructure investors is a divisive topic in the business valuation community. The tangible economic benefits of franking credits are evident, so there should be no doubt about their contribution to value. However, individual investor perspectives and uncertainty over the most appropriate approach to valuing the benefits of franking credits has created significant debate and variation in practice.

In this paper we investigate the value of franking credits through both a theoretical lens and empirical research with a specific focus on infrastructure assets.

Franking credits

Does a carbon price pollute value? The impact on businesses and infrastructure assets

The purpose of this paper is to present some exploratory analysis on the implications of the introduction of a carbon scheme on the value of businesses, relative and absolute. This analysis draws from both market data as well as anecdotal market soundings.

Does a carbon price pollute value?

Regulated assets - Trends and investment opportunities

In this paper we explore a few valuation issues concerning regulated infrastructure assets. Highly regulated infrastructure assets (such as energy transmission and distribution assets) are commonly considered a low-risk investment. Finance can be obtained at relatively low-cost and distribution to investors is relatively stable. 

Regulated assets

Australian toll roads - An opportunity for Canadian pension funds?

In recent years foreign investors, particularly Canadian funds which accumulate funds by virtue of Canadian pension/superannuation requirements, have demonstrated a growing interest in investment in Australian infrastructure assets, specifically in respect to toll road assets and have offered bid prices in excess of those offered by Australian investors.
We explore some of the factors that contribute to an Australian investor not providing a higher offer against a Canadian pension fund, particularly when Australian fund investors routinely include the value of franking credits in their bid models.
 

Australian toll roads
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