ReportWire

Tag: infrastructure financing

  • Former Morgan Stanley Managing Director John Veech Named CEO at Sustainability Partners

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    Veech to Lead SP in Addressing U.S. Infrastructure Challenges


    CHANDLER, Ariz., November 18, 2024 (Newswire.com)
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    Sustainability Partners (“SP”), a Public Benefit Company and leader in sustainable infrastructure funding, deployment, and maintenance across the United States, today announced that the Board of Directors has unanimously elected John Veech, a current member of the Board of Trustees, as CEO of the wholly-owned operating entity of Sustainability Partners, SP Services, effective December 1, 2024.

    “As we enter this exciting growth phase, it’s time to enhance our senior leadership capability,” said Tom Cain, SP’s board chair. “With the billions needed for core infrastructure projects, I am confident that John’s extensive experience in global infrastructure capital markets makes him the ideal choice for this pivotal role. The entire SP leadership team is eager for John to step into this critical position as we continue our rapid growth.”

    Veech has built a distinguished career, most notably serving as managing director and head of Americas for Morgan Stanley Infrastructure Partners, a global diversified infrastructure investing platform, for over a decade and, more recently, as managing partner and chief investment officer at Marathon Capital Partners. He was previously a managing director and global head of infrastructure project finance at Lehman Brothers for over 10 years. Veech brings a wealth of experience in investing, managing, and financing infrastructure assets across sectors such as renewable energy, power, midstream, transportation, communications, and utilities.

    “Sustainability Partners is poised for exceptional growth, and I’m excited to lead this visionary company alongside a talented team,” said Veech. “Our Infrastructure as a Service® model is transforming how essential infrastructure is funded and managed. I’m eager to collaborate with Tom, our leadership team, and all employees to drive innovation and shape the future of infrastructure.”

    “We are honored to welcome John to the team, which will further expand our footprint and strengthen our offerings,” added Gary Goldstein, SP board member. “John’s leadership and industry expertise perfectly align with our mission, and I am confident his strategic insight will be pivotal for us as we catalyze a new and improved era of infrastructure.”

    About Sustainability Partners
    Sustainability Partners (SP) is a Public Benefit Company that facilitates funding, deployment, and ongoing care of essential infrastructure to help municipalities, universities, schools, and hospitals meet their needs. SP can help solve any combination of funding, design, engineering, procurement, installation, and maintenance of essential infrastructure with no upfront costs. Like a utility, SP charges a monthly usage fee based on a month-to-month agreement. Its goal is to establish long-term relationships with its customers and ensure their infrastructure remains safe, reliable, and improving forever.

    Learn more about Sustainability Partners.

    Source: Sustainability Partners

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  • Sustainability Partners Revolutionizing Infrastructure Funding and Management to Address $1 Trillion Deferred Maintenance Crisis

    Sustainability Partners Revolutionizing Infrastructure Funding and Management to Address $1 Trillion Deferred Maintenance Crisis

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    CHANDLER, Ariz., October 17, 2024 (Newswire.com)
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    Sustainability Partners (SP), a Public Benefit Company, is transforming how essential infrastructure is funded, deployed, and maintained across the United States. At a time when states and communities are seeing revenues flattening, spending decreasing, federal pandemic recovery aid ending, and Infrastructure Investment and Jobs Act grants slowing, SP’s Infrastructure as a Service® (IaaS) model provides a scalable, sustainable solution to meet the growing needs of municipalities, universities, schools, hospitals, and other public entities.

    The nation’s infrastructure crisis is no secret. Communities are grappling with aging schools, public facilities, and water systems urgently needing upgrades. Many municipalities lack the capital and resources to address these issues. SP’s IaaS offers a solution by renewing essential infrastructure without burdening the budget or increasing debt. In the past 12 months, SP has achieved nearly 100 fundings for infrastructure projects, including smart water meters, microgrids, EVs and charging stations, wastewater treatment plants, and more.

    SP’s IaaS model simplifies the complexities of infrastructure projects and covers every stage of development—from design and engineering to procurement, installation, and maintenance—at no upfront cost to the customer and with the flexibility of monthly usage fees, similar to paying a utility bill. Currently active in 14 states, SP’s innovative approach enables public entities to modernize and maintain their infrastructure.

    “Our Infrastructure as a Service® model provides a win-win for communities,” said Thomas Cain, Founder and CEO of Sustainability Partners. “We remove all barriers to quality critical infrastructure improvements while ensuring that cities, schools, hospitals, and others have access to the latest technologies and maintenance support they need—relieving financial strain.”

    Infrastructure funding is often disconnected from the performance or long-term success of the infrastructure itself. Once cities secure funding, they must begin repayment immediately, regardless of whether the project is successful or even functional in the future.

    In contrast, SP’s IaaS funding is directly tied to the success and longevity of the infrastructure. This removes the risk of deferred maintenance and ensures the infrastructure is always safe, reliable, and operational. Public entities can expedite the modernization and adoption of sustainable infrastructure with a plan for maintenance while avoiding expensive debt issuance and the associated burdens that come with it.

    As a Public Benefit Company, SP is committed to building long-term partnerships that enhance the sustainability and reliability of public infrastructure. Public benefit companies are required by law to deliver measurable infrastructure benefits for cities, states, schools, and other public bodies. SP focuses on ensuring that the critical systems communities rely on—such as water and sewer lines, electric vehicle charging stations, or renewable energy solutions—are built to last and operate efficiently for decades.

    “By fostering collaborative relationships and delivering 100-year solutions, we’re demonstrating that the future of infrastructure can be safe, reliable, and continuously improving, providing a sustainable path forward for communities across the country,” said Cain.

    About Sustainability Partners
    Sustainability Partners (SP) is a Public Benefit Company that facilitates funding, deployment, and ongoing care of essential infrastructure to help municipalities, universities, schools, and hospitals meet their needs. SP can help solve any combination of funding, design, engineering, procurement, installation, and maintenance of essential infrastructure with no upfront costs. Like a utility, SP charges a monthly usage fee based on a month-to-month agreement. Its goal is to establish long-term relationships with its customers and ensure its infrastructure remains safe, reliable, and improving forever.

    Learn more about Sustainability Partners.

    Source: Sustainability Partners

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  • Kotak Mahindra Bank expanding infra-financing play, says Honcho Paritosh Kashyap

    Kotak Mahindra Bank expanding infra-financing play, says Honcho Paritosh Kashyap

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    Kotak Mahindra Bank is keen to ramp up its infrastructure financing play, including transaction banking, in 2024. businessline caught up with Paritosh Kashyap, President and Head Wholesale Banking Group, Kotak Mahindra Bank, to gain perspective on the bank’s strategic plans. Excerpts: 

    How do you describe Kotak’s strategy in the infrastructure sector?

    Infrastructure financing is and remains a critical focus area for Kotak Bank. Our infrastructure exposure has nearly doubled in the last 18 months. While our focus is on completed projects, we also look at under-construction projects backed by marquee sponsors. We aim to cover the entire ecosystem of infrastructure financing, including transaction banking, escrow accounts, and full underwriting and syndication of project loans.

    What sectors within infra does Kotak focus on? What has been the bank’s growth in this area?

    Kotak has historically focused more on sectors such as renewables, roads, and telecom within the infrastructure space. Incrementally, we are now also focusing on the logistics and warehousing space.

    What is the size of Kotak’s infra book relative to its overall wholesale bank’s advances?

    Kotak’s infrastructure book is around 10% of its wholesale bank’s advances book.

    How do you describe Kotak’s focus within the infrastructure sector?

    Kotak aims to be a provider of a full gamut of banking solutions in the infrastructure space, including the underwriting and distribution of larger project loans and transaction banking solutions such as cash management and escrow solutions.

    What are the plans for the growth of infra in the country moving forward, as per you?

    Infrastructure is a key focus area, and its financing is seeing participation from not just the government but the private sector as well, including banks. It is estimated that ₹143-lakh crore will be invested in the infra space in the country from here on till FY2030. Roads is an important sector in this space and is expected to witness investments of over ₹37 lakh crore during this period. 85 per cent of this is likely to be government-funded, with the private sector funding the remaining 15 per cent, which translates to around ₹5.6-lakh crore. Large part of these projects will be funded by a 70:30 debt:equity mix which translates to a debt requirement of Rs 3.92 lakh crore. Banks will be a major contributor to this debt. And this is for roads alone. Funding opportunities are huge in the entire infra space.

    What will be Kotak’s primary focus areas for the year 2024?

    Kotak’s primary focus areas in 2024 include transaction banking, where the emphasis will be on using technology and data to enhance customer service. We will focus on creating an ecosystem for corporate clients and making banking more convenient for them.

    What are Kotak’s aspirations in the wholesale banking space?

    We aspire to be relevant to our customers, not just in size but also in our offerings. We aim to be a full-service player, providing tailored solutions that address needs of a customer, from lending on our balance sheet to the distribution of assets, managing the customers’ collection, payments, and cash management requirements, managing their trade, forex, and remittance flows, and becoming their preferred transaction banker.

    How do you describe Kotak’s focus on transaction banking?

    Kotak’s focus on transaction banking involves providing corporate customers with end-to-end solutions. This includes facilitating payments, collections, opening Letters of Credit (LCs), foreign remittances, and more to create a comprehensive ecosystem for corporate clients.

    We understand that the methods of transaction banking are rapidly evolving. Digitalization and global acceptance of the need for technology and its swiftness are disrupting trade and conventional business methods. Kotak’s digital journey is agile, evolving, and flexible to adapt to changes. We are striving to lead the change by investing in and adopting new technologies that are revolutionising transaction banking. Kotak fyn (For Your Needs) is one of the examples that takes the leap in providing DIY solutions to clients. 

    It’s a one-stop-shop solution for corporates where they can initiate collection and payments and explore other trade solutions digitally. Kotak fyn also serves the purpose of being a faster, more compliant, and more transparent solution for corporates.

    What are your thoughts on the current and future role of technology in banking?

    As of now, banks are investing heavily in technology to service customers, and at the current pace of technology investments, we will not be surprised if we morph into tech companies providing banking services. The use of technology on the wholesale banking side has traditionally lagged. But having experienced improved experiences on the retail side, most corporates are now demanding similar improvements on the corporate side as well. Banks are now investing to offer more convenience, better products, and improved customer experiences through technology to corporate customers.

    What is the current state of the credit environment?

    The credit environment is exceptionally positive, with all-time low default rates across banks and high provision coverage ratios for non-performing assets (NPAs). Additionally, banks have raised significant capital. The business landscape is also thriving, especially with the recovery from the impact of Covid-19.

    Published on January 2, 2024

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