Friday, 25 July 2014
Sorgenia’s sponsors CIR and Verbund and the power producer’s 21 lenders have closed the signing of the standstill agreement on the company’s €1.9bn debt. This paves the way for a €400m debt-to-equity swap and the issue of a €200m convertible bond. CIR and Verbund have said they will no longer hold any shares in Sorgenia after the closing of the agreement. The two sponsors will be taken out with an earn-out on future distributions equal to 10% of the amount obtained that is in excess of the capital subscribed by the lending banks capitalised at 10% per year.
Bhimasena Power Indonesia (BPI) declared a force majeure on June 27. This is the first time such a declaration has been made in the country’s power sector. By Minerva Lau.
The global project finance market saw a minor uptick in volume numbers in the first half of 2014, compared with the first half of 2013. Some notable deals were transacted to keep the volumes up and there was a good spread of other financings. However, the market is still suffering from too few deals as both the banks and institutions chase assets. The figures are researched from around the world to give a globally accurate guide to the project finance market.
The Australian dollar bond market has re-emerged as a real funding alternative for infrastructure companies, but it’s not all doom and gloom for the banks. By Roderick Smythe, senior associate, King & Wood Mallesons.
The keenly awaited annual Project Finance International (PFI) Global Infrastructure report has been published at a time when the market is turning. More long term liquidity is available for infrastructure schemes, pricing on shorter term infraco deals is moving down encouraging sponsors back into bidding for assets and the projects pipeline is showing signs of growing once again.
PFI has released its first Best Practice in Asia report - at a time when the procurement and development of projects has never been more critical as the region seeks to ensure its infrastructure keeps pace with its economic growth. The report includes a range of views from senior project practitioners plus the first PFI Citations for best practice.
Going clubbing still seems to be the way to raise debt finance, even nearly six years after the onset of the global financial crisis (GFC) – apart from in one sector, oils, where large underwritings, oversubscriptions and scale-backs are, currently, the order of the day.
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The Global Energy report takes a look at the full range of issues currently exercising the project finance market - from funding schemes in Africa and obtaining finance for coal fired plants onto renewables, FLNG and the LNG boom in North Americas.
The need for rail road, power, port and resources infrastructure has become an economic priority for countries across the Asia Pacific. The lessons from past infrastructure financing failures have also been learned as governments, sponsors and lenders frame new financial structures that share and minimise financial risk during construction.