KUALA LUMPUR (May 20): Infrastructure will drive growth in the Asia-Pacific, according to S&P Global Ratings.
In a statement on Monday, the rating agency said whether it’s progressing with carbon-cutting goals or moving people and goods, the common connecting theme is that each nation will be investing heavily.
In a commentary titled, “How Asia-Pacific Will Pay For Its Carbon-Cutting Infrastructure”, S&P Global Ratings credit analyst Christopher Yip said strong economic growth in Asia-Pacific calls for more infrastructure.
“This is particularly true in India and Indonesia.
“China and Australia are accelerating their exit from fossil fuels, and this also requires heavy expenditure on renewable facilities,” said Yip.
How will entities and governments pay for all this building?
S&P said it is a pressing matter, given high interest rates for dollars.
Participants are getting more experimental in project financing, and in adopting new forms of funding such as private credit.