Well, it was some year! One minute, the bond and loan markets were flying, the next they were drowning. It really was that quick. In early June a UK private finance initiative (PFI) hospital wrapped linker bond, North Staffs, was priced at 45.5bp – a record low. By early July, Peterborough hospital had come in at 65.5bp and then the credit crunch really hit. By year-end, the Broomfield hospital deal had limped in at 107.5bp. But despite the more than doubling in price, at least Broomfield got done.
Brazil is the prom date that every project finance banker wants. The country has huge resources, a stable political environment, a great need for infrastructure, and thus attractive interest rates, but it also has a sluggish government that hinders development and a below investment-grade rating. By Alan Gersten.
After some years in the doldrums, continued economic growth has fuelled a resurgence in interest from the international bank market in lending to projects in India. By John Dewar and Alison Smith of Milbank Tweed Hadley & McCloy LLP.
Since the implementation of the open door policy 29 years ago, China’s economy has been developing at an average rate of 9.7% per annum and last year total GDP rose to more than US$2,700bn, making it the fourth largest economy in the world. By Simon Black and Wei Hua, Allen & Overy, Shanghai..
With insatiable needs for energy and infrastructure and a privatisation-friendly government, Turkey has emerged as the most prominent emerging project finance market. Greg Roumeliotis reviews an impressive 2007 and previews an even more exciting 2008.
Flush with cash, governments in the Gulf region have been making their presence felt in the global economy in dramatic ways. Barry Marshall looks at the power of the Gulf sovereign wealth funds and the implications for the world’s markets.
Although 2007 has been an impressive year for fundraisings in Africa, investments of such funds have been few and far between in project finance deals. Will the noise to actual participation ratio come down in 2008? By Greg Roumeliotis.
The power sector in Asia is roaring with activity in preparation for new generation capacity required to meet a surge in demand in the next few years. International developers, however, are facing new issues as they struggle to get projects off the ground. Minerva Lau writes.
Free road alternatives, availability payment concessions and the growing use of muni bond funding solutions through public activity bonds are just a few of the ideas to have emerged in the booming but slow-moving US toll road market this year. By Deirdre Fretz.
Water desalination is becoming one of the most important technologies in parts of the globe with fresh water shortages. This article reviews technological improvements to reduce the energy needed to produce desalinated water. By Laurent Guey, membrane market leader, Degrémont.
Sixty-five percent of the world’s electric power is currently generated by the conversion of energy that is chemically bound in fossil fuels such as coal, oil, or natural gas. By Lothar Balling, Siemens Power Generation.