In a recent interview with Solar Industry, Standard & Poor’s Michael Wilkins and Trevor D’Olier-Lees explain the rating methodology behind project finance assessment, and how this is applicable to the renewable energy sector. Wilkins explains that renewable projects, in particular, are “seeing more infrastructure funds and financial sponsors” – bringing a wider variety of investors, and opportunities. As such, D’Olier-Lees explains how S&P are aggressively moving towards the renewable projects ratings arena, combining their own experience and expertise with the knowledge gained from technical reports provided by engineers to deliver an assessment that is applicable across the board – ranging from traditional projects, such as building a bridge, to renewable projects like solar.
Marcona, Peru’s largest wind project, has secured two financing agreements totalling $254 million from Natixis. The French bank acted as sole institution tranche underwriter, sole subordinated loan placement agent and sole hedging provider.Natixis’ Pascal Soldaini, Managing Director, Head of Global Infrastructure & Projects Latin America, said, “Natixis is pleased to have supported its valued client, Cobra, on these two landmark transactions with a tailor-made financial structure combining various sources of financing.”
The May issue of Standard & Poor’s monthly newsletter, Infrastructure Outlook, is now out. This month’s edition explores how low oil and gas prices are affecting project finance ratings, concluding that, for now, the dent is minimal, but could become more prominent if prices continue to flat line, or worse, drop further. Elsewhere, global interest in renewables is on the up. Therefore, S&P refreshes readers on their approach to rating renewable energy projects.
Another prominent feature looks at the impact of natural disasters, such as floods and earthquakes, on corporate ratings. Particularly relevant as recent research reveals that the economic cost of natural catastrophes has shot up over the past 10 years – with scientists predicting a steady rise in the regularity and intensity of such environmental happenings this is a trend that looks set to continue. As such, S&P believes the resilience of corporates’ creditworthiness to environmental risk is due to be severely tested.
Key transport and utility rating movements across Europe, including news on UK-based High Speed Rail Finance and Spain-based utility group Red Electrica, are also featured.
Moorgate has been producing Infrastructure Outlook since 2002. This issue can be viewed in pdfor e-book format, with the latter containing two short videos.
In a report published by Standard & Poor’s Ratings Services titled ‘Corporate Bond Market Shows Its Green Shoots’, Michael Wilkins, Managing Director of Infrastructure Finance, discusses the dramatic growth of the green bond market, and how this emerging trend could see corporate green bond issuance reach up to $30 billion by the end of 2015. Over the next 12 months, a real game-changer could be China, whose green bond market could grow substantially as Beijing steps up its anti-pollution drive.
The Gemini offshore wind project – in which Siemens Financial Services (SFS) was an equity provider – has been awarded a Deal of the Year award by Environmental Finance magazine.
The record EUR2.8 billion wind deal reached financial close in May last year, setting a new benchmark for project finance volumes in the offshore wind and renewables sector.
In an in-depth award write-up, Environmental Finance cites stakeholders on both the debt and equity sides of the Gemini transaction, including Siemens Financial Service’s EMEA Head of Energy Investments, Wolfgang Bischoff, explaining: “SFS brought investing experience and credibility to the finance process”.
To read the Environmental Finance Wind Deal of the Year 2014 write-up, please click here.
The April issue of Standard & Poor’s monthly newsletter, Infrastructure Outlook, has been released. This edition’s lead story looks at the growth of the corporate green bond market, and how China could be the real game-changer over the coming years. A second prominent feature examines recent developments in Spanish infrastructure; specifically relating to the transparency and predictability of the regulatory, legal, political, and contractual frameworks under which toll road operators function. Amid other topics, new ratings on the Priority School Building Programme projects are discussed, as well as new rating movements in the utility and transportation sectors.
Moorgate has been producing Infrastructure Outlook since 2002. The issue is available in pdfor e-book format.