TXF Nordics 2019: Exporting Forum
This regional one day event brings together key decision makers, advisories and exporters together to debate the future of Nordic export finance.
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.
The defeat of Daesh in Syria and Iraq can hopefully provide greater impetus to new business in Iraq. What is critical now is consolidation of security for the rebuilding of basic infrastructure – such as power generation and water. Jonathan Bell examines inroads being made by European ECAs to support this trade.
With levelised cost of energy beginning to favour renewables-linked storage over traditional peakers in the US, utility-scale storage is dawning. Regulatory change, growing investor appetite and more efficient tech signal major project lending potential in the next two years – and the bankability of GIG’s recent VPP deal sets the template for turning that potential into project financed reality.