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KBRA Publishes Project Finance Research: “Private Placement Market Adapts to Fierce Competition”

January 11, 2019

NEW YORK--(BUSINESS WIRE)--Jan 11, 2019--The 2018 private placement market recorded $85 billion in debt issuance, of which project financing accounted for around 30% ($25 billion), according to Kroll Bond Rating Agency (KBRA) estimates. The private placement market continued to be a relatively attractive funding source for issuers looking to put in place long-term stable financing. However, competition among banks and institutional investors continued as the amount of capital to be invested increased year over year. The increased competition resulted in the financing of nontraditional revenue streams, such as merchant cash flows for wind and solar projects. The private placement market last year also recorded a few transactions that are typically financed in the Term Loan B market. However, these debt placements came at a cost to the project sponsors as they had to hedge a large portion of revenues and agree to stricter structural provisions. The competitive pressure also resulted in lower financing costs for some in-demand projects. This dynamic was most pronounced in the renewable energy sector, which experienced declining rates on rising Treasury prices, mainly due to reduced credit spreads.

KBRA’s Project Finance group has published an article discussing some recent market trends, credit performance of certain sectors and its expectations for 2019.

To view the report, please click .

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View source version on businesswire.com:https://www.businesswire.com/news/home/20190111005479/en/

CONTACT: Analytical Contacts:

Andrew Giudici, Senior Managing Director

(646) 731-2372

agiudici@kbra.comMarisol Gonzalez de Cosio, Senior Director

(646) 731-2463

mgonzalezdecosio@kbra.com

KEYWORD: UNITED STATES NORTH AMERICA NEW YORK

INDUSTRY KEYWORD: PROFESSIONAL SERVICES FINANCE INSURANCE

SOURCE: Kroll Bond Rating Agency

Copyright Business Wire 2019.

PUB: 01/11/2019 05:02 PM/DISC: 01/11/2019 05:02 PM

http://www.businesswire.com/news/home/20190111005479/en

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