BU PF Specialist Meeting: Positive outlook for Project Finance despite uncertain macro environment
The PF industry is looking positive in the post-pandemic landscape and despite the uncertain macro environment a healthy appetite for green and renewable projects looks set to drive future-demand
The Berne Union Project Finance Specialist meeting took place in Copenhagen between 28th and 29th June 2023, kindly hosted by EIFO.
More than 60 Project Finance experts representing a total of 31 Export Credit Agencies, multilateral institutions and private credit insurers participated in the event, to discuss recent trends and issues around Project Finance in a complex and changing macro-economic risk environment.
During an insightful two days, the BU PF expert community and invited guests covered a wide range of issues, including:
How macroeconomic and political trends are impacting PF; the intricacies of multi-sourced financing; challenges financing battery gigafactories; lessons learned from past restructurings; examples of climate finance; application of rating methodologies; ESG categorisation; and hybrid finance deals.
The major takeaway from the meeting is that the PF industry is on a way to recovery from the negative impacts created by the pandemic, but inflation and high interest rates are presenting new concerns for an industry built upon predictability of long-term cash-flows. While it may take a little more time than we think to convert buoyant interest in green industry into concrete deals and financings, it is certain that renewable energy projects have a promising future trajectory which the industry will be paying close attention to.