Copying and distributing are prohibited without permission of the publisher
24 September 2009
Bank market terms have eased a little in recent months,
but remain restrictive for even the best North American borrowers. A look at the current market standards from Peter Manis, managing director and head of infrastructure for North America at Calyon.
This year's much-anticipated pipeline of infrastructure financings in North America has not met expectations. In the past banks have traditionally been the primary sources of finance for these types of projects. But they were beset with their own set of well-publicised issues in the latter half of 2008, including write-offs, bankruptcies, mergers, several failed syndications, reduced liquidity, increased funding costs and general capital constraints. The bond market, another key source of funding, also retreated in late 2008, with yields and spreads for investment grade-rated debt exploding to multiples of traditional levels. Sponsors, infrastructure procurement authorities and sellers/governments have had to come to grips with these challenges, which affect the value of assets. Some deals have made it to the finish, but others have been postponed or pulled completely.
This article explores the impact that the financial/credit crisis and the current recession has had on non-recourse financings for North American...
Take a free website trial to read this article. It’s easy to get a trial – just follow this link or email firstname.lastname@example.org.
Or, if you’re a subscriber or have an active trial, simply log in below to read the article.
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Taking a free trial will give you access to the latest news and analysis, as
well as the online deals database, BenchBase. Start your free trial today.