Three years ago, things seemed bleak for project finance in the infrastructure sector. The monoline funding model had long-since 'died' an inglorious death and few options remained for securing project finance. The credit and liquidity crisis had seriously reduced bank debt lending; institutional investors were hoarding not investing; and governments were refocusing their priorities onto austerity measures.
What was clear was that the markets would require some form of credit enhancement vehicle if infrastructure deals were going to continue to be financed and attract institutional investment from the bond market.
What was less clear was how that credit enhancement would be achieved, who would shoulder the risk and under what terms.
This edition of FORESIGHT explores project finance in the infrastructure sector and the evolving finance options for investors.