Project Finance: Lenders Viewpoints
Project Finance: Lenders Viewpoints and Evolution Tendency. The past few years have brought a flood of new Project finance options to the power and infrastructure. And that has finally put infrastructure financing — particularly in the emerging markets — onto solid footing. The wellsprings of the flood are varied: a sustained period of low interest rates; the emergence of institutional capital targeting infrastructure as an asset class; the rise of local currency financing; the growth of sustainable investment vehicles. Together, they all add up to a swell of new financing options becoming available to infrastructure projects. Project finance lenders employ rigorous credit analysis methods to minimize risk when dealing with issues including stringent financial regulatory requirements, new biomass-to-energy power project sponsors, new independent power producer rules, and new biomass technologies and fuel sources. This article outlines the credit analysis process and provi...