Australia, Capital Markets, Multilaterals and Supranationals, Regional Asia - Wednesday, September 30, 2009 13:29 - 0 Comments

IFR Asia: appetite slowly returns for project finance

IFR Asia, September 2009

Project finance in Asia, while hit by the credit crunch, has a number of reasons for optimism. Funding sources appear to be returning, and the demand for power and infrastructure in Asia is every bit as big as it always has been.

“Project finance is a very long term game with a considerable gestation period for any of these deals,” says David Gardner, managing director and global head of project finance, resources and energy group at HSBC. “We don’t see a lot of volatility day in day out: you might have to delay a project but for the most part deals need to stand up on their own and if so will remain on the books. There’s a real supply-demand gap so transactions will still get done.” He says over the last year or so around US$10 to 15 billion of project financing has been done in Asia, and that next year he would expect $20 to $30 billion. Continue…

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