Everything got bigger in 2005 in project finance, driven by the continuing boom in the general credit markets and the high energy/commodity prices. But not everything. Margins got smaller. Competition among banks for assets really started to hot up. In the hottest market of all, in the Middle East, marins in the 50bp range for billion dollar plus deals became the norm. By the end of the year, an uncovered medium term financing in Nigeria was priced at 175bp.
The global petrochemical industry is about to experience another capacity wave following three years of below average growth. By Patrick Rooney, managing director of CMAI Middle East, based in Dubai, and Bettina Schroeder, an associate based in Houston.
There has been an ongoing litany of project cost overruns this year. Estimated costs for some projects have more than doubled in the past year. By John Jenkins, Philip Leighton and John Staigerwald, Jacobs Consultancy Inc.
The oil and gas markets scaled record peaks in 2005 and while the revenue generated is likely to fuel a robust list of exploration, production, refinery and natural gas liquefication projects for years to come, defending these extremes could prove a tall order. By Tim Evans, IFR Energy Services.
Commodity risk is an increasingly common part of project finance transactions. By Travis Dunbar, associate, and Chris Dymond, managing director, Greengate LLC.
The last time I visited Gazprom I had to take a plane to Moscow. This time I got the 7.57 from Waterloo. By Rod Morrison.
Liquefied natural gas (LNG) shipping had a bizarre year in 2005. By Lucy Hine, TradeWinds.
The Export Credits Guarantee Department (ECGD), the UK’s official export credit agency (ECA), has been facilitating the export of goods and services for nearly 90 years. It now has a new chief executive from the project finance world, Patrick Crawford, who writes here.
Nuclear power is back on the table in a big way - how will the new nuke vogue play out for project financiers? By Daniel O’Sullivan.
The forecourt fuel of the moment is a hot prospect for project finance but could also burn clean through over-optimistic expectations. By Daniel O’Sullivan.
Project finance banks could not get enough of toll road deals like RAV and Sea-to-Sky in Canada last year, and the two Chicago Skyway transactions were also hugely successful. Those deals were just practice as the North America market gets ready for a strong start in 2006, By Alison Healey.
The year of the Rooster will be remembered as one in which some chickens came home to roost in the PPP market. By Tony Poulter of Pricewater-house-Coopers, a temporary Australian.
The approach to financing infrastructure, in a pendular fashion, is swinging back from mostly private toward increased public participation. By Juan Benavides and Antonio Vives, Inter-American Develop-ment Bank.
Infrastructure made a huge dent in the Top Ten deals of 2005 in the Americas. By Alison Healey.
There seems to be a mixed bag of huge projects completed this year in Asia. Australia leads with three projects, two of which were related to refinancing. There were two from South Korea - one refinancing and expansion, and the other a greenfield. By Minerva Lau.
This year’s boom in energy finance is easily shown by Top 10 deals by size table this year. Not one deal is below US$1bn in debt size. By Rod Morrison.