EIX was established to help bridge the USD15tn* infrastructure investment funding gap by 2040 and the trillions of dollars of private capital, both foreign and domestic, searching for a home.
The primary instruments on EIX are Project Bonds issued to raise between GBP50mn and GBP500mn in debt for new infrastructure and development projects or to refinance existing assets.
Private Placement Auctions will provide Corporate Finance Advisers and infrastructure project issuers access to capital at competitive, risk-adjusted rates determined through a competitive Auction to raise debt for new infrastructure and development projects or to refinance existing assets.
The Aquis-EIX Market provides Professional Investors with a dedicated venue on which to trade in or out of infrastructure-related Project Bonds.
Private Placement Auctions
The current means of Private Placement requires Corporate Finance Advisers to interact with a select group of Investors directly through traditional communication methods to receive offers for stakes in Projects. Whilst this is the traditional method used, it can be time consuming in vetting and communicating with each individual Investor and ensuring that participants have access to the accurate information and opportunity to do so.
Private Placement Auctions enable EIX Pilots (FCA Registered Corporate Finance Advisors) to raise debt for infrastructure and development projects through a competitive auction with Professional Investors.
EIX Pilots use a wide definition of infrastructure. Projects with contracted revenues and assets that can be held in a Special Purpose Vehicle (SPV) can usually be funded. This includes traditional infrastructure classes such as energy, transport and social infrastructure as well as infrastructure-adjacent assets such as industrial developments and regeneration projects.
Projects funded through Private Placement Auctions will use standardised due diligence and legal documentation to reduce time to market. The standardisation of financial data and documentation makes it easier for Investors to make decisions.
Pilots and Issuers also benefit from EIX’s existing network of Investors who are already part of an existing community and looking to participate in the Asset Class.
EIX are already working with Corporate Finance Advisers to develop the process and standardisation framework required and are currently engaged with the Financial Conduct Authority in order to obtain the appropriate regulatory permissions to operate Private Placement Auctions in the near future.
EIX have partnered with Aquis Exchange PLC, who are Authorised and Regulated by the Financial Conduct Authority (firm reference number 595785) to provide the required regulatory cover for a new bond trading venue, Aquis-EIX. This marketplace will enable professional investors to buy or sell existing Project Bonds using market-established prices set through regular auctions.
The trading venue serves a dual-purpose. It provides an efficient market for investment firms to exit Project Bonds, thus de-risking investment in new issuances. It also provides a pool of established infrastructure Project Bonds into which investment firms can take direct positions and build a diversified portfolio.
Helping Finance a Sustainable Future
EIX is committed to Improving the lives of global citizens and the unprecedented climate change challenge – through thoughtful infrastructure investment. EIX works with global organisations to ensure projects funded through the Exchange positively contribute in the following ways:
Commitment to 1.5°C temperature ceiling
The world’s leading climate scientists have warned there are only a dozen years for global warming to be kept to a maximum of 1.5°C, beyond which even half a degree will significantly worsen the risks of drought, floods, extreme heat and poverty for hundreds of millions of people. Changes to our built environment are one of the most effective ways of limiting ongoing global warming. To help effect an understanding of how infrastructure can contribute towards positive change, all projects, regardless of asset class or geography are assessed on their climatic impact.
Issuing Green Bonds
EIX is a member of the Climate Bonds Initiative (CBI). The Climate Bonds Standard and Certification Scheme is a labelling scheme for bonds. Rigorous scientific criteria ensure that it is consistent with the 2°C warming limit in the Paris Agreement. The Scheme is used globally by bond issuers, governments, investors and the financial markets to prioritise investments which genuinely contribute to addressing climate change. Further information available here.
Supporting the UN’s Sustainable Development Goals
EIX supports the UN’s Sustainable Development Goals by assessing every project submitted against each goal and including the assessment for Investors.
EIX is also a preferred funding partner for the World Bank – Cities Resilience Programme. The Program aims to empower cities to pursue comprehensive investment programs to strengthen resilience, and to access a broad range of financing options. Further details on the programme and EIX’s involvement can be found here.
Preventing Modern Slavery
Across the globe, construction as a sector has an ongoing issue with the exploitation of undocumented workers. EIX requires all Issuers to sign a declaration committing to check all contractors and their sub-contractors do not use undocumented workers. EIX also requires Project Monitors on all construction projects to report on labour practices.
Professor Ian Reeves CBE
Ian’s role as Chairman is to help set and implement the Group’s direction and strategy.
Ian is Chairman of GCP Infrastructure Investments Limited, a listed FTSE 250 company and visiting Professor of infrastructure investment and construction at Alliance Manchester Business School. He is the Senior Partner and co-founder of Synaps. He was the founder and Chairman of the High Point Rendel Group PLC.
Ian’s 50-year career has seen him in a number of senior roles as well as Chairman of the London regional council of the CBI and other public and private bodies. Ian currently holds a number of other directorships and was awarded his CBE for services to business and charity.
Mark is Chief Executive of Estates and Infrastructure Group and oversees the strategy and development of all Group businesses including Estates and Infrastructure Exchange.
Multi-lingual entrepreneur Mark began his career at Thomson Reuters, holding a number of senior management roles before moving to Algorithmics, specialising in enterprise risk, as director responsible for European expansion.
He founded Expand Consulting, providing intelligence, business development and decision support services globally, acquired by Boston Consulting Group. He was also MD of Route Group, a wealth club, and in 2008 he founded Propel Capital Partners, which raised funds for corporates and projects.
Chief Financial Officer
As well as his role as EIX’s Chief Financial Officer, Mike also advises on the development of the trading platform.
Mike brings more than 30 years of experience in senior positions at some of the world’s leading financial institutions including HSBC, Thomson Reuters and FTSE.
Through his work, he is an acknowledged expert in bonds, currency baskets, forex, equities, algorithmic trading and complex event processing.
Chief Risk Officer
Colin is EIX’s Chief Risk Officer and oversees the identification and mitigation of risk across the Group’s companies.
Over a 30-plus year career Colin has held a number of senior risk roles in leading financial institutions including Barcap and BNY Mellon. Colin has a PhD in laser physics from the University of St Andrews and retains an active interest in science and the use of technology. His expertise and experience involve close liaison with regulators and supervisors on prudential and conduct issues.