Bright, and getting brighter
New sources of equity, a strengthening bond market and a bedrock of provincial support have made Canada a 'bright spot in the global PPP market', say equity investors, underwriters and advisors active in the market
AS COMPLICATED AS PPPs may be to put together - talk to a PPP deal lawyer or banker and you'll often hear tales of a foot of documentation, if not more - the recipe for their success is not nearly as complicated. It's one (big) part political support, one part availability of debt, plus a steady choice of deals and partners with whom to pursue them.
Over the past two years, European countries reassessed their PPP programmes amid belt-tightening. The US market gave birth to scarce successes amid a minefield of broken deals. Meanwhile, Canada continued to deliver all the required ingredients and more for what PPP advisors, lenders and equity investors see as one of the most vibrant markets for PPPs in the world.
"Canada is really a very bright spot in the global PPP market," says Nicholas Hann, executive director at Macquarie Capital Markets Canada in Vancouver. "As a result, every major global PPP player has a presence in Canada."