TXF APAC Trade & Commodity Finance 2021
Join us while we are looking into the commodity finance sector for the Asia Pacific region. Connect with key players and hear about current and future deals.
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.
What has Covid meant for ECAs and their ability to attract smaller companies? How are ECAs responding to the needs of these new clients and how are they broadening their financing partners? Once the pandemic imperative is over, will those smaller businesses be back for more? TXF talks to four ECAs about their experience with SMEs – and finds out things may have changed for good.