With the UK’s EU referendum now just weeks away, S&P Global Ratings has released a new report which explores the potential impact of a Brexit on infrastructure development in Britain.

Drawing on a recent survey of 51 infrastructure funds – including investment management companies, insurance companies, hedge funds, pension funds, and sovereign wealth funds – S&P found that investors fear a resultant currency volatility above all else.

According to the survey, 71 per cent of institutional investors fear a Brexit would restrict infrastructure investment within two years of the vote, and possibly longer. 

Currency volatility is the top concern, with fears that a Brexit could raise infrastructure development costs and thus increase revenue instability, particularly for overseas investors. Other immediate consequences of a Brexit are likely to be political instability and macroeconomic turbulence that may postpone investment decisions. 

On the flip side, the survey reveals that a departure from the EU may present opportunities for capturing higher returns, which could ignite some unexpected activity.