The Estates Investment Exchange (EIE) is to become a new regulated investment exchange to finance large projects, specifically large infrastructure and regeneration projects.
The core function of EIE is to run a transparent trading platform and efficient, risk-adjusted pricing mechanism that allows investors to buy and sell stakes in large infrastructure bonds, which have been rated. EIE turns large infrastructure projects, which are highly illiquid, long-term investments into blocks of tradable debt and equity style instruments.
There is an almost unprecedented need for capital investment in infrastructure and large-scale regeneration projects. After many years of underinvestment, capital is required to extend and improve rail networks, build social housing, create new energy facilities, refurbish roads and bridges, build new link roads, expand universities, hospitals and schools, improve ports and airports and redevelop large swathes of cities through complex regeneration projects.
The EIE funding process follows a prescribed set of steps to package the project with the aim of securing an investment grade rating for the project (BBB or better).