What are the key changes in the way projects have been financed over the last 15 years?
Firstly, the appetite from financers has grown. This is partly due to the focus on environmental, social and governance issues, which in turn has produced more competition between investors. As more investors compete to be involved in the industry, the cost of finance decreases.
Secondly, there is now a greater mix of public and private projects. Where projects are not backed by the state, they are still able to be bankable through private financing.
Thirdly, size. Fifteen years ago, $100m in financing was huge, while today many transactions cover portfolios of projects that represent more than $1bn. Lenders are more comfortable with risks and therefore happy to lend more.