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 2024-07-24 17:35 PM

People, Passion, Planet: Mary Kay Releases 2024 Sustainability Report

(이코노미아울렛-뉴스)Mary Kay Inc., a global leader in corporate sustainability and advocacy, today released its 2024 Sustainability Report. The report—which is organized by environmental, social, and economic impact—underscores the company’s commitment to creating and nurturing a business model that enriches women’s lives and supports communities while protecting our planet. ...

경제뉴스 2024-08-01 08:00 AM

엣지랭크 ‘소셜아이어워드 2024’ 음료브랜드 분야 인스타그램 대상 수상

(이코노미아울렛-뉴스)디지털 종합광고회사 엣지랭크(대표 장정우)가 ‘소셜아이어워드(SOCIAL i-AWARD) 2024’에서 진로 공식 인스타그램으로 음료브랜드 분야 인스타그램 대상을 수상했다고 밝혔다. 진로 공식 인스타그램 ...

경제뉴스 2024-07-02 09:28 AM

우리은행, 2023 ESG 보고서 발간

(이코노미아울렛-뉴스)우리은행(은행장 조병규)이 지난 1년 간 펼쳐 온 다양한 ESG경영 성과를 담은 ‘우리은행 2023 ESG 보고서’를 발간했다. 지난해에 이어 두 번째로 발행하는 이번 보고서는 △환경(E) △사회(S) △지배구조(G) 등 각 분야에서 우리은행이 추진한 성과에 근거해 ‘ESG금융’과 ‘고객...

경제뉴스 2024-08-02 11:10 AM

닐슨IQ-JD 월드와이드, 2024년 중국 해외직구 소비 트렌드 백서 공동 발간

(이코노미아울렛-뉴스)닐슨IQ(NielsenIQ, NIQ)와 JD닷컴(JD.com)의 수입품 원스톱 전자상거래 채널인 JD 월드와이드(JD Worldwide)가 ‘2024년 중국 해외직구 소비 트렌드 백서(2024 China Cross-Border Import Consumption Trends, 이하 백서)’를 공개하고 이 업계가 업그레이드와 성장 단계에 접어들었음을 강조했다. 온라인 ...

경제뉴스 2024-06-27 10:30 AM

Andersen Global Inks Collaboration Agreement with Celen in Turkey

(이코노미아울렛-뉴스)Andersen Global initiates further expansion in Turkey with the addition of collaborating firm Celen Corporate Property Valuation & Counseling Inc. (Celen), adding valuation resources to the organization’s existing tax and legal capabilities. The 50 years of extensive, diversified hands-on experience in various areas of construction, infrastructure, industrial...

경제뉴스 2024-08-06 08:00 AM

민텔, 2024 인코스메틱스 코리아에서 동남아시아 뷰티 소비자 공략법 공개

(이코노미아울렛-뉴스)글로벌 마켓 트렌드 리서치 기업 민텔(Mintel)이 최근 코엑스에서 개최된 화장품 원료 국제인증 전시회 ‘2024 인코스메틱스 코리아’에 참여했다. 킨센 찬의 동남아시아 뷰티 트렌드 발표주제 ...

경제뉴스 2024-07-18 17:00 PM

모두센스, 혁신적인 디지털 광고 네트워크의 등장

(이코노미아울렛-뉴스)프로스(대표 김훈철)는 파트너식스 제휴마케팅과 연동된 광고 매체 네트워크 모두센스를 공식 오픈했다고 18일 밝혔다. 제휴마케팅은 디지털 마케팅의 핵심 요소 중 하나로 그 효율성과 성과가 중요하다. 이러한 상황에서 모두센스는 구글 GDN과 같은 한국형 광고 네트워크로 등장...

경제뉴스 2024-08-27 13:55 PM

‘IT 아웃소싱 최적화: 문제점 해결 및 효율성 극대화’ 세미나 개최

(이코노미아울렛-뉴스)브이티아이가 ‘IT 아웃소싱 최적화: 문제점 해결 및 효율성 극대화’ 세미나를 개최한다. ‘IT 아웃소싱 최적화: 문제점 해결 및 효율성 극대화 세미나’가 개최된다 디...

경제뉴스 2024-06-28 10:18 AM

IBK기업은행, 2024년 지속가능경영보고서 발간

(이코노미아울렛-뉴스)IBK기업은행(은행장 김성태)은 28일 ESG (환경·사회·지배구조) 경영 성과를 담은 2024년 지속가능경영보고서를 발간했다고 밝혔다. 기업은행은 보고서를 통해 과학 기반 감축목표 이니셔티브(SBTi) 인증 획득, RE100 펀드 조성, 젠더본드 발행 등 주요 ESG 성과를 공개했다. 올...

경제뉴스 2024-07-18 14:20 PM

LTIMindtree Delivers 2.6% QoQ USD Revenue Growth in CC

(이코노미아울렛-뉴스)LTIMindtree [NSE: LTIM, BSE: 540005], a global technology consulting and digital solutions company, announced its consolidated results today for the first quarter ended June 30, 2024, as approved by its Board of Directors. “While the environment remains unchanged, fiscal 25 started on a positive note for us with Q1FY25 revenue of USD 1.1 billion, registering ...

경제뉴스 2024-07-22 11:32 AM

삼성전자, 7번째 C랩 아웃사이드 공모

(이코노미아울렛-뉴스)삼성전자가 함께 성장하고 미래를 선도할 혁신 스타트업 발굴에 나선다. 삼성전자는 7월 22일부터 8월 14일까지 ‘C랩(C-Lab) 아웃사이드’의 스타트업을 공개 모집한다. 올해로 7회째를 맞는 이번 공모전은 서울, 대구, 경북, 광주 4개 지역에서 동시에 진행해 전국의 유망 스타...

경제뉴스 2024-07-18 11:37 AM

한화 주요 계열사, RSU 확대 시행… 팀장 88% 전환 선택

(이코노미아울렛-뉴스)한화그룹이 대표이사와 임원들을 대상으로 운영하고 있는 RSU(양도제한조건부주식, Restricted Stock Unit) 제도를 주요 계열사 팀장까지 확대 시행한다. 2020년 책임경영과 주주가치 제고를 위해 국내 상장사 가운데 처음으로 RSU 제도를 도입해 시행한 지 4년 만이다. 먼저 한화·한...

Top