Project Finance Use to Surge Over the Next Two Years

경제뉴스
2024-09-04 14:10 PM
(이코노미아울렛-뉴스)

An overwhelming majority (86%) of industry experts believe project finance as a method of financing large scale infrastructure projects will grow in use over the next two years. This is according to a major new global study[1] commissioned by CSC, the world’s leading provider of global business administration and compliance solutions.

North America, benefitting from the Inflation Reduction Act (IRA) among other tailwinds, is predicted to see the most significant uptick in project finance activity over the next two years, selected by over a third (39%) of respondents.

On a sectoral level, renewable energy projects such as wind and solar are seeing the most activity, representing the primary focus area for over half (55%) of respondents. This is followed by infrastructure, including roads, bridges and airports (29%). Within renewables, solar is expected to see the biggest increase in deals over the next 24 months.

CSC’s Project Finance Report 2024 focuses on the outlook for project finance deal activity across regions and sectors globally. The findings are based on the views of industry professionals working in project finance across North America, Europe, the U.K., Latin America, and Asia Pacific (APAC), in industries including banking and finance, development and construction, power and energy.

Corresponding with these findings, CSC has anecdotally observed a recent increase in project finance related deal flow.

“We’re seeing renewed momentum for project finance deals across various markets as pandemic-related obstacles recede and supportive regulatory changes and legislation take root,” says Bryan Gartenberg, managing director at CSC. “Growing urgency to invest in renewable energy infrastructure coupled with global demographic shifts and rising prosperity are all driving demand for project finance, giving rise to new opportunities and challenges for market participants.”

Regional growth

While deal growth is expected in all surveyed regions, North America is predicted to be the most dynamic. This is, in part, due to the IRA, though Export Credit Agencies (ECAs) are also seen as being central to driving sponsorship of project finance structures and attracting institutional investors.

North America is followed by Latin America, Europe—which is enjoying supportive regulation in the form of European Long-Term Investment Funds (ELTIF 2.0)—and the U.K., with 29% of those surveyed expecting each of these regions to see an increase in activity.

In line with the report’s findings, CSC has observed conditions for growth in the Latin American market.

“While Latin America is slightly behind globally when it comes to the investment in the infrastructure and energy sectors, investment in the sector is a key objective for many of the regions’ administrations, and will fuel economic and GDP growth,” says Michael Morcom, managing director, Latin America at CSC. “Countries such as Brazil have introduced new regulations for infrastructure debentures and have allowed power purchase agreements (PPAs) to be denominated in U.S. dollars with the goal of attracting more foreign investment, and we’re seeing stirrings in other markets such as Colombia, Argentina, and Peru, following a few years of under-investment.”

APAC, meanwhile, was cited by just over a quarter (26%) of those surveyed.

“APAC is increasingly active in project financing, particularly in Australia where there is a strong commitment to net zero, and in Japan, which is exporting capital through its large banks to projects in the APAC region,” says Con Kleanthous, managing director, APAC at CSC.

Sector growth

The top four industries respondents are currently focused on are renewable energy projects (cited by 55% of respondents); infrastructure (29%); oil and gas (25%); and real estate development (24%).

Within the renewable energy project space, respondents believe solar will see the biggest increase in deals over the next two years, followed by wind (24%), fuel cell (14%), and green hydrogen (12%).

“Wind and solar are at the forefront because of their proven track record on bankability, but as emerging technologies are proven to be successful from a financing perspective, we can expect to see more growth in newer asset classes like hydrogen. This is, in turn, engendering ever-complex project finance structures needed to accommodate them,” says Gartenberg.

“As these structures grow in complexity, it’s increasingly important to ensure that all parties involved have the right levels of experience and knowledge—particularly when a project goes across multiple countries and local financial and regulatory expertise is needed,” continues Gartenberg. “Engaging a trust and agency service provider with a robust understanding of local markets, a strong track record, and the ability to take on various roles—including that of collateral agent, account bank, administrative agent, and inter-creditor agent—can thus play a key role in minimizing risks and ensuring that a deal runs smoothly and protects stakeholders’ interests.”

To receive a copy of CSC’s Project Finance Report 2024 report, please contact Camilla Wyatt or Lucy Gibbs at cscteam@citigatedewerogerson.com.

Notes to editors

[1] CSC, in partnership with Pure Profile, surveyed 200 industry professionals working in project finance to understand their views on which regions are currently seeing the greatest activity for project finance deals, and how this will change in the near future. Respondents were split across North America, Europe, the UK, Latin America, and Asia Pacific, and worked across different industries, including banking and finance, construction, and energy.

About CSC

CSC is the trusted partner of choice for more than 90% of the Fortune 500®, more than 90% of the 100 Best Global Brands (Interbrand®), and more than 70% of the PEI 300. We are the world’s leading provider of global business administration and compliance solutions, specialized administration services to alternative asset managers across a range of fund strategies, transactions involving capital markets participants in both public and private markets, domain name system management and digital brand and fraud protection, and corporate tax software solutions. Founded in 1899 and headquartered in Wilmington, Delaware, USA, CSC prides itself on being privately held and professionally managed for more than 125 years. CSC has office locations and capabilities in more than 140 jurisdictions across Europe, the Americas, Asia Pacific, and the Middle East. We are a global company capable of doing business wherever our clients are—and we accomplish that by employing experts in every business we serve. We are the business behind business®. Learn more at cscglobal.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240903259861/en/


함께 보면 좋은 콘텐츠

All posts
경제뉴스 2024-06-28 09:32 AM

대웅제약, 2024 지속가능경영보고서 발간… 환경·사회·지배구조 전 부문 강화

(이코노미아울렛-뉴스)대웅제약(대표 이창재·박성수)은 지난 1년 간의 ESG 경영 성과 및 향후 계획을 담은 2024 지속가능경영 보고서를 발간했다고 28일 밝혔다. 지속가능경영보고서는 대웅제약 홈페이지에서 열람 가능하다. 올해로 두 번째 지속가능경영보고서를 발간한 대웅제약의 ESG 전략은 ‘인...

경제뉴스 2024-07-29 17:03 PM

창조경제혁신센터협의회 ‘지역 창업생태계 리포트-2024 포항’ 발간

(이코노미아울렛-뉴스)창조경제혁신센터협의회(이하 협의회)는 기존 창업통계와 차별화해 도시 단위의 창업생태계를 정례적·개괄적으로 분석하는 ‘지역 창업생태계 리포트’를 발간했다. 이번 보고서는 △포항 창업생태계 현황 △포항 창업생태계 특화산업 분석 △포항 창업생태계 진단 △해외사례...

경제뉴스 2024-07-10 17:51 PM

언더독스-서울스타트업스, MOU 체결… 국내 체류 외국인 창업가 육성에 협력

(이코노미아울렛-뉴스)창업 교육 전문 기관 언더독스와 글로벌 스타트업 커뮤니티 서울스타트업스가 상호 교류 및 협력을 위한 업무 제휴 협약(MOU)을 체결했다. 언더독스가 글로벌 스타트업 커뮤니티 서울스타트업스와 상호 교...

경제뉴스 2024-07-24 14:50 PM

DCO Calls for Urgent Discussions with Member States, Digital Experts to Address Recent Global IT Outage’s Implications

(이코노미아울렛-뉴스)The Digital Cooperation Organization’s (DCO) General Secretariat said in a statement that it will hold urgent discussions with its Member States and digital economy experts to address the implications of the global IT outage that disrupted vital operations around the world, affecting critical business sectors like aviation, banking, broadcast media, software provide...

경제뉴스 2024-08-08 15:00 PM

6센스, 2024년 포브스 클라우드 100대 기업 선정

(이코노미아울렛-뉴스)B2B 조직이 파이프라인을 생성, 관리 및 수익으로 전환하는 방식을 혁신하는 선도적인 플랫폼인 6sense®가 4년 연속 ‘포브스 클라우드 100대 기업(Forbes Cloud 100)’에 이름을 올렸다고 발표했다. 포브스 클라우드 100대 기업은 포브스가 베세머 벤처 파트너스(Bessemer Venture Partners) 및 세...

경제뉴스 2024-07-17 15:30 PM

임영웅, 현직 광고인과 마케터가 선정한 대한민국 대표 광고모델 1위 선정

(이코노미아울렛-뉴스)가수 임영웅이 ‘현직 광고인·마케터가 광고주에게 추천하는 대한민국 대표 광고모델’ 설문에서 1위를 차지했다. 현직 광고인·마케터가 광고주에게 추천하는 대한민국 대표 광고모델 전체 1위 및 남성 ...

경제뉴스 2024-08-22 10:02 AM

슈나이더 일렉트릭, 2024년 2분기 지속가능성 영향 성과 발표

(이코노미아울렛-뉴스)에너지 관리 및 자동화 분야의 디지털 혁신을 선도하고 있는 글로벌 기업 슈나이더 일렉트릭(www.se.com/kr/ko/ , 한국지사 대표 김경록)이 지속가능성 영향(Schneider’s Sustainability Impact, SSI) 프로그램의 2024년 2분기 성과를 발표했다. ...

경제뉴스 2024-07-18 08:00 AM

비즈플레이, 국내 최초 ‘올인원 bzp출장관리’ 웨비나 성료

(이코노미아울렛-뉴스)Expense 비용관리 Total 솔루션 비즈플레이(대표 김홍기)가 ‘올인원 bzp출장관리’ 웨비나를 성료했다고 18일 밝혔다. 지난 10일 비즈플레이 유튜브에서 진행된 비즈플레이 ‘올인원 bzp출장관리’ 웨비나 포...

경제뉴스 2024-08-13 09:00 AM

직능연, 소규모 직업계고의 학점제 운영 현황 및 지원 요구 분석

(이코노미아울렛-뉴스)소규모 직업계고 학생들의 과목 선택권 확대를 위해서 교원 수급과 교육과정 운영 지원이 필요한 것으로 나타났다. 학생의 과목 선택권 확대를 위해 필요한 지원(중복응답) ...

경제뉴스 2024-07-02 09:00 AM

직능연, 조직몰입·신뢰·직업만족 국제 비교

(이코노미아울렛-뉴스)한중일 청년들은 40대 전후까지 조직몰입, 신뢰, 직업만족이 하락하는 것으로 나타났다. 각국 변곡 연령 비교표 한국직업능력연구원(원장 고혜원)은 7월 2일(화) 계간지 ...

경제뉴스 2024-07-17 14:00 PM

2024년 2분기 ‘TV광고 DX 어워드’ 지자체 ‘철원군’ 수상

(이코노미아울렛-뉴스)애드테크 전문기업 모티브인텔리전스(대표 양준모)는 오늘 ‘TV광고 DX 어워드’의 2024년 2분기 수상 캠페인으로 철원군(대행사: 한국언론진흥재단)이 선정됐다고 밝혔다. 2024년 2분기 ‘TV광고 DX 어워드’...

경제뉴스 2024-07-15 14:20 PM

언더독스 ‘액션세미나 EP. 02 : 일본의 혁신 생태계’ 포럼 성료… 한일 스타트업 생태계 협력에 메시지 전해

(이코노미아울렛-뉴스)취·창업교육기관 언더독스가 ‘액션세미나 EP. 02 : 일본의 혁신 생태계’ 포럼이 성공적으로 막을 내렸다고 밝혔다. 언더독스가 ‘액션세미나 EP. 02 : 일본의 혁신 생태계’ 포럼을 성료했다(이미지출처=...

Top