The general theme among lenders is one of cautious optimism with expectations of moderate growth in the short to mid-term as reflected in slightly improved lending terms. Indeed, our Confidence Barometer for banks rose for the fifth year in a row and is now at its highest level since 2008. Non-bank respondents are even more optimistic as alternative financing sources begin returning to the market.
Nevertheless, project and jurisdiction fundamentals have to be right for any financier. Capital providers continue to look for strong project and jurisdiction fundamentals such as a developer, contractor and management team with a track record of success and sound financials and financing plan. Also essential is a jurisdiction with good airlift and an easy-to-understand foreign investment process, supported by transparent legislation and a stable political environment.