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Perspective
05 April 2023

Proximo Weekly: The survey is back

Proximo’s annual project finance survey is back and looking for respondents - take 10 minutes to vote and vent.

Proximo has re-launched its annual survey. The Global Project Finance Survey 2023 is open to all market participants and the results will be published later in the year.

The survey maintains anonymity for respondents and has been designed for corporates, developers, sponsors and advisers active within the project finance market. It helps us assess which jurisdictions are most bankable and which banks and firms have performed most strongly. The on-line questions should take no longer than 10 minutes to complete.

The survey will build-out from Proximo’s 2021 survey, which provided some interesting post-pandemic results, some of which still apply, while others have been impacted by fallout from Russia’s invasion of Ukraine, rising interest rates and inflation.

So how much of the 2021 survey will be the same in 2023?

In 2021, survey respondents had a favourable view of the state of the project finance sector (Figure 4), with Dynamic (49%), Positive (41%) and Healthy (34.7%) the top three adjectives respondents chose when describing their view of the market. This corresponded to expectations of dealflow, with a majority of respondents (53%) expecting dealflow over the next 12 months to be higher, with a third expecting it to remain the same and only %12 expecting a reduction in dealflow.

Positivity regarding deal flow was paired with an expectation that debt pricing would rise. The vast majority (87.8%) of respondents expected pricing on project finance deals to increase over the next 12 months, with 10% expecting pricing to remain the same and only 2% expecting a decrease. This sentiment was unsurprising given global inflation and rising EPC and commodity costs, though bank lenders in particular, had long hoped for a debt pricing correction that had yet to materialise.

Most respondents did not expect tenors on project finance debt to increase, with just over two thirds believing they would stay the same, 22.5% expecting a decrease, and 12.2% an increase.

When asked their view of the most promising countries and regions as a source of dealflow over the next 12 months, the US was a clear frontrunner with 54.5% of respondents. Indeed, North America was seen as the most promising region overall as a source of transactions with 57% of respondents, followed by Latin America (22.5%), Europe (16%) and Asia Pacific (4.5%).

Renewables and Energy transition technologies (Wind, PV, green hydrogen, and carbon capture) were overwhelmingly (53.5%) the assets that respondents were most excited about financing in 2021, followed by transport (11.6%) and digital infrastructure (11.6%).

A majority of survey respondents also said that ECAs and DFIs would be either more important (19.2%) or similarly important (57.5%) in project finance over the next 12 months, with only 23.4% believing that they would be less important.

Do you feel strongly that any of that sentiment has changed? Then please take 10 minutes to fill out this year’s survey.

If you have any survey queries please contact Marko Micovic at marko.micovic@proximoinfra.com


Selected news articles from Proximo last week

 

NORTH AMERICA

RfQ issued for Prince Edward hospital redevelopment

Infrastructure Ontario and Quinte Health Care have issued a Request for Qualifications (RFQ) for teams to deliver the Prince Edward hospital redevelopment project.

 

EUROPE

Lithuania opens offshore wind tender

The Lithuanian State Energy Regulatory Council (VERT) has launched a tender to select a developer for an offshore wind project in the Baltic Sea.

 

ASIA-PACIFIC

Orsted takes FID for Taiwanese offshore projects

Orsted has taken the final investment decision (FID) on its 920MW Greater Changhua 2b and 4 offshore wind farms in Taiwan.

 

MIDDLE EAST & AFRICA

EU provides €347m for Nairobi bus rapid transit project

The European Union has committed €347 million ($376.7 million) to finance the third line of an electrified bus system to link Nairobi to other cities in Kenya.

 

SOUTH AMERICA

BNDES finances Umari wind complex

BNDES has approved a BRL907 million ($179 million) in financing for Casa dos Ventos to implement four wind farms, forming the Umari wind complex, in Rio Grande do Norte.

 

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