Shifting global supply chains, rapid urbanization, technological advancements, energy security needs, and continued population growth are among the factors driving increased infrastructure investment in emerging markets. Amid this push to expand and modernize, EM infrastructure debt is drawing increased attention from investors seeking exposure to long-term, predictable cashflows and diversification benefits beyond other EM corporates.
Encompassing a wide array of assets—ranging from transmission grids, renewable power clusters, telecommunications towers, and shipping ports—the investable universe has grown meaningfully in recent years. These credits are underpinned by transparent regulatory frameworks, long-term contracts, and, in many cases, sovereign support. The breadth and depth allows for ample opportunity to invest at scale, and the following post identifies five subsectors emblematic of the space.1
Private sector investments in emerging markets infrastructure, or private participation in infrastructure (PPI), has soared 276% over the last 20 years, according to the World Bank Group, reaching US$87.2 billion in 2023 and accounting for a cumulative US$1.8 trillion in investment over that span (Fig 1).2
Figure 1
Cumulative PPI in Infrastructure Investment (US$ B)
Source: World Bank; data accessed 16 Sept 2025. The term “investment” refers to private investment commitments at the time of financial close in energy, transport, water and sanitation, municipal solid waste, and ICT-backbone projects serving the public in low- middle-income countries, including natural gas transmission and distribution, but excluding oil and gas extraction.
This financing is increasingly executed within the EM corporate sector to the point where the investable universe of EM infrastructure credit has grown meaningfully and now accounts for a substantial share of EM bond indices. With 115 distinct issuers, infrastructure-related EM corporate credit accounts for US$152 billion out of the total US$1.5 trillion of USD-denominated EM corporates within the ICE BofA Emerging Market Corporate index.3
The operating assets underlying these credit structures function under regulated frameworks with transparent compensation mechanisms, some degree of natural inflation protection, and insulation from political interference. In addition, they frequently include some backing (whether implicit or explicit, direct or indirect) by the sovereign governments and agencies that rely on this critical infrastructure.
There are many EM infrastructure credits worth exploring and we highlight the characteristics of some interesting structures that have made it to market in recent periods (Fig 2).
Figure 2
An Overview of Financing Structures in the Infrastructure Sector
Conclusion
Emerging market infrastructure debt presents a compelling landscape for investors seeking stable, inflation-linked returns and diversification beyond other EM corporate debt. These credits are underpinned by stable, recurring cash flow, regulated frameworks with transparent compensation mechanisms, long-term contracts, and, in many cases, government support. As capital continues to flow into infrastructure and the emerging markets, the careful selection of well-structured credits with attractive risk/return characteristics will be key to capturing the sector’s potential.
1 The opinions on the assets mentioned herein are based on the accompanying research and are not indicative of holdings in a specific portfolio.
2 World Bank Group. PPI Visualization Dashboard, accessed 16 Sep. 2025.
3 EM Corporate Credit Research – Bank of America. (2025). EM Infrastructure Universe [Unpublished raw data]. Bank of America.
Source(s) of data (unless otherwise noted): PGIM Fixed Income, as of October 2025.
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