Welcome to the 2018 Thomson Reuters Project Finance International (PFI) Yearbook. The Yearbook is our annual publication in which we look at the events of 2017, through case studies and the PFI Awards, and look forward into 2018 with interviews and articles in the Global section of the book.
SMBC has developed its project finance platform across all products lines and all geographies this year. In particular, its global lending and advisory activities were extremely active, with the advisory units taking off. The bank is using its advisory function to secure lead roles on important transactions. The growth in this side of the business shows the bank will have plenty of deal flow going forward in the coming years. Activity in the bonds area has been picking up, although there is room for growth as the team building grows. The private placement origination function has grown in the US.
Japan’s life insurers have been forced to seek out alternative markets for returns in the face of an ultra-loose monetary policy that has collapsed yields in the yen bond market. Nippon Life has led this new dynamic by seeking investments in project finance markets at home and abroad. By Jonathan Rogers.
Queensland Investment Corp (QIC), the investment management arm of the Queensland government has come a long way since it was first established in the early 1990s to handle the investments of the state government’s pension funds following the establishment of compulsory superannuation. By John Arbouw.
Caisse de dépot et placement du Québec (CDPQ) has grown from being an asset manager in francophone Canada to a green-conscious global player in infrastructure. Executive vice-president of infrastructure and president and CEO of CDPQ Infra Macky Tall talks to PFI about that growth. By Nic Stone.
AXA Investment Managers - Real Assets has closed its first infrastructure debt fund just over a year after opening up to external investors. The firm is outpacing many rival institutions in building up a European portfolio. ByStefano Berra
The complexities of project financing power and infrastructure assets in frontier markets remains highly challenging. Aside from the legal and regulatory framework, which often may need to be created in order to allow foreign investment in infrastructure, three major hurdles exist preventing deals from closing. By Kaushik Ray, partner, Trinity International LLP.
India is embarking on a major push towards renewable energy, and domestic companies in the sector such as Greenko and ReNew Energy have been innovative in fundraising. In the process a dynamic has been unleashed that pushes domestic investors to the forefront as a wave of disintermediation away from bank lending kicks in. By Jonathan Rogers.
The solar industry is witnessing tremendous growth as climate change pushes governments to promote renewable energy sources, and Singapore-based Sunseap is making a name for itself. It has become one of the region’s leading solar energy providers. By Minerva Lau.
Once a maverick developer, Access Power now has a pipeline of about 1,500MW across Asia and Africa. Founder and chairman Reda El Chaar talks to Colin Leopold about the challenges of that come with maturity
After another strong and innovative year of Australian renewables activity, Allens project finance specialists Michael Ryan and Lisa Zhou reflect on the key trends in 2017 and provide their insights on what happens after the 2020 finish line.
Turkey’s new renewable energy framework (YEKA), launched this year, aims to establish a manufacturing supply chain across the country and deliver the first two 1GW projects over the next few years. Muren Guler, renewable energy consultant, looks at the programme in more detail.
RBC led a diverse group of innovative transactions in the Americas in 2017, including Fort McMurray West Transmission and First Nations East Tank Farm, that could set a precedent on financing structures for complex, large, and critical assets.
The Alberta PowerLine transaction combined an innovative power financing with a deal structure typically seen in public-private partnerships. The deal represented the largest P3 bond transaction in Canadian history. By Alison Healey.
The US public-private partnership (P3) market achieved another hallmark milestone in November of 2017 with the closing of the Transform 66 Outside the Beltway managed lanes P3 project. By energy and infrastructure projects counsel Joshua Nickerson and associates Joshua Goldman and Matthew Vitorla, Skadden Arps Slate Meagher & Flom LLP.
At the start of 2015, Mexico’s Federal Electricity Commission (CFE) commissioned the development of a combined-cycle power plant just south of Ciudad Juarez in the State of Chihuahua, Mexico, to help meet the growing need for electricity in the region. By Rob Kupchak, senior managing director, and Mario Fernandez, senior vice-president, Macquarie Capital; and Dan Bartfeld, partner and head of global project, energy and infrastructure finance group; John Franchini, partner and head of global corporate group; and Roland Estevez, global project, energy and infrastructure finance partner, Milbank Tweed Hadley & McCloy LLP:
From relative obscurity to a billion dollars of capital for power projects in a few years. Stoneway shows how to get it done when opportunities present themselves. By Nic Stone.
The Brazilian government has created a new market lending rate for BNDES, the TLP. By Eduardo Lima, partner and Priscilla Santo, counsel, Tauil & Chequer Advogados in association with Mayer Brown.
This year, the lunar year of the rooster, could be the declared the year of China as Xi Jinping consolidates its power, China takes a larger role in the global community, and its Belt & Road Initiative (BRI) has gone into full gear. BRI is one arm of China that sees its influence growing, with a focus on energy and infrastructure in Asian countries that stretch from Singapore and Indonesia to the east and Pakistan and Kazakhstan to the west.
Myanmar has emerged as one of the more promising opportunities in the region for the development and financing of power projects, and the Myingyan power project is currently the most significant project in the market. By Benjamin Thompson, partner,Mayer Brown JSM; Dennis Foo, vice-president, Sembcorp; Marat Zapparov, senior director and Ted Low, associate director, Clifford Capital.
The refinancing of PT Paiton Energy heralded the first investment-grade bond issue for a private borrower in Indonesia, the first investment-grade bonds for an infrastructure project in Asia and the first public project bonds from the region in the 144A/Reg S format since 1997. By Gregorie Bouzereau and Gerald Sim, HSBC.
In October 2017, QSPS issued M$1bn of limited-recourse sukuk for the financing of three separate 50MWac solar plants in Malaysia. By Eric Ho, associate director,CIMB Investment Bank Berhad, and Celynna Wong, chief financial officer, ITRAMAS Corporation Sdn Bhd.
The Sirajganj-4 power plant is a significant milestone in the development of the energy sector in Bangladesh. By Nomi Ahmad, Ng Song Meng and Ruchika Saluja of Sembcorp Utilities Pte Ltd, and Audra Low, Marat Zapparov and Ted Low ofClifford Capital Pte Ltd.
The 1,180MW Fukushima LNG-based power generation project is expected to significantly contribute to the revitalisation of the region. By Naoaki Eguchi, partner, and Tsutomu Kobayashi, partner, at Baker McKenzie.
Societe Generale had a significant role in many of the deals that shaped the 2017 European project finance market and contributed to define the main trends of the year.
The Sweihan solar PV project was perceived as such a success by its procurer, ADWEA, that there is now talk of 1.5GW to 3GW a year of new solar PV projects in Abu Dhabi over the next few years. At 1,177MW, Sweihan itself will be the world’s largest solar PV plant.
Europe’s first privately financed power interconnection line will link France and Italy and operate on a merchant basis. The project required complex regulatory work and was financed with an innovative EIB-backed non-recourse debt package. By Lorenzo Parola, Francesca Morra, Marc-Alexandre Courtejoie and Giacomo Gavotti at Paul Hastings.
The Glennmont transaction is the first bond issue by a project company active in the Italian wind sector. By Ottaviano Sanseverino, partner and head of the energy and infrastructure department, and Oriana Granato, partner of the energy and infrastructure department, at Gianni Origoni Grippo Cappelli & Partners.
When the government of Egypt announced the details of its monumental Egypt FiT programme in September 2014, International Finance Corporation (IFC) was both pleased to see the launch of such a bold initiative and aware of the challenges ahead. Through this landmark programme, Egypt declared its determination not just to harness its rich solar and wind endowment to enter the global renewable energy market in a grand manner, but equally important to create a wide and accessible asset class in which both local and foreign private companies, large and small, could actively participate. By Christopher M Cantelmi, principal, Nuru Lama, principal, and Erik Becker, manager, at the IFC.
Salalah Methanol Company has a financial and operational performance track record. The real question was how to leverage that performance to achieve an optimal financing for SMC’s new ammonia plant. By Abdullah al Habsi, SMC, and Tristram Gang, Standard Chartered.
The closing in October 2017 of the 250,000 m3/day Shuaibah Second Expansion IWP under the Saudi Water & Electricity Company IWP/IWPP procurement programme of the Kingdom of Saudi Arabia brings the total committed desalination capacity of the Shuaibah complex to approximately 1.3 million cubic metres per day, making this the largest privately owned desalination complex on the planet. Anil Vijayachandran, executive manager, Abdullah Badruddin, manager ofACWA Power’s acquisitions and project finance group, along with Yasser Yaqub, legal projects executive director – head of finance of ACWA Power’s legal projects, recount key aspects of the deal.
The Kigali Bulk Water Supply Project, a 40,000 m³ per day potable water project in Rwanda, achieved financial close to become the first bulk surface water PPP project in sub-Saharan Africa. By Aman Sachdeva, CEO and founder,Amit Singh, associate director, and Bibhu Prasad Das, senior associate, Synergy Consulting.
Just how desperate are folks, as President Obama use to call people, to get into deals? Fairly, seems to be the answer but the market can still produce some surprises. I mean, you can get a longer tenor on a Mozambique railway line than on rolling stock in the West Midlands, UK.