TXF Americas 2020
The fun in the sun returns! Bringing all key players together for two days of networking, we explore case studies of the latest deals and examine the next hot opportunities across the region.
Project finance is a non-recourse loan structure used to fund infrastructure projects. Project finance keeps the debt off the project sponsor’s balance sheet – if the project defaults, the lenders take over ownership of the project asset and have no recourse to the original project sponsor. This enables developers to borrow money for major projects without the risk of corporate bankruptcy should the project fail. The structure is widely used in the financing of major projects in the oil and gas, power, renewables, mining, transport (fixed and moveable assets) and public-private-partnership (P3) sectors. In addition to non-recourse debt, project financing can take the form of limited recourse debt, ECA-backed debt, DFI-backed debt, project bonds and even securitisations.
At TXF's PRI conference in December, Pierre Vergnes, head of institutional financing at Fonroche Lighting, explains why the off-grid solar manufacturer taps ECA support over the private market when looking for insurance in challenging high-risk countries.