Cash & Liquidity Management
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Globally Demanding: Cash and Liquidity Management in the Infrastructure, Real Estate and Building Materials Sector

 

Treasuries in the Infrastructure, Real Estate and Building Materials (IRB) sector1 operate against an extremely demanding backdrop. Globally dispersed operations, multiple project-specific operating entities, high entity turnover and multiple diverse regulatory environments are just a few of the challenges they face. Nevertheless, as Mark Eastwood, Global Sector Head – Infrastructure, Real Estate and Building Materials (IRB), Global Liquidity and Cash Management at HSBC explains, there are various ways in which leading IRB treasuries are successfully managing despite these conditions.

The IRB sector consists of multiple interlinked and interdependent sub-sectors that have major economic significance. A recent report by PWC and Oxford Economics2 estimates that global infrastructure spending will hit USD9trn per year by 2025, up from USD4trn in 2012.
In view of the acknowledged link between infrastructure spending and GDP growth3, this increase potentially represents a major global economic stimulus.