Part 7 Global trends in the sale of PPP equity

The UK PPP secondary market is the largest globally, however, equity transactions have grown in other developed countries that have adopted the same PPP model. The Global PPP equity database is more limited in its scope and detail than its UK companion and is still under development. For example, it has limited information on profits, the date of financial close and the annual rate of return. The same qualifications and constraints described for the UK PPP equity database apply.

The global sale of PPP equity database currently contains 146 equity transactions between 1998-2012 involving 297 PPPs - see Table 22 and Appendix 5. The number of transactions increased significantly since 2009, the number of PPPs had a more gradual increase between 2004-2012. This may reflect improved access to information or increased disclosure rather than changes in the rate of equity transactions.

Table 22: Annual rate and value of Global PPP equity transactions (1998-2012*)

Year

No. of equity trans-actions

No. of PPP projects (includes those where equity sold more once)

2012*

30

64

2011

20

41

2010

30

54

2009

9

29

2008

10

47

2007

16

19

2006

8

15

2005

5

8

2004

9

10

2003

5

5

2002

2

2

2000

1

1

1998

1

2

Total

146

297

Source: Appendix 5, Global PPP equity transactions 2002-2012 * 11 months.

The total value of PPP equity sales is approximately US$113 billion - see Table 23. Europe (excluding the UK), Australia and Latin America accounted for 80% of PPP equity transactions, followed by Asia and Canada.

Table 23: Summary of Global PPP equity sales (1998-2012*)

Region or Country

No of transactions

No of PPP

Value of equity sales (m)

Estimated total value based on average (m)

Republic of Ireland

7

10

€538.0 (2)

€1,883.0

Rest of Europe (excl. UK)

43

108

€19,511.7 (26)

€32,269.3

Canada

13

16

C$5,164.1 (8)

C$8,391.7

US

7

14

US$2,248.8 (3)

US$5,247.2

Latin America

30

73

US$7,948.7 (19)

US$12,550.6

Australia

36

45

A$12,213.9 (15)

A$29,313.4

Middle East

1

1

C$77.8 (1)

C$77.8

Africa

2

2

US$15.8 (1)

US31.6

Asia

7

28

US$8,134.0 (5)

US$11,387.0

Total

146

297

 

Estimate US$113bn

Source: Appendix 5, Global PPP equity transactions 2002-2012 * 11 months.

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