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WITH global energy demand in a robust state, the need for new lending capacity--particularly on the gas side--is precipitating a revival of the project-finance market, as sponsors seek out new [...]

The most recent major infrastructure project to be financed in Vietnam is the landmark US$412 million Phu My 3 Power Project, which achieved first drawdown at the end of 2003. [...]

Export credit and investment insurance agencies play an important role in international project finance in developing countries, and have a strong impact on sustainable development. One of the largest sustainable [...]

China offers the richest potential source of power projects on the planet. Brisk annual GDP growth, over 9% last year, creates increasing energy demand that currently is unsated, with recurrent [...]

Latin America is on the brink of an economic recovery that it is poorly equipped to sustain. Despite strengthening currencies, soaring stock markets, and falling country risk premiums, many countries [...]

The past 12 months have seen little development of energy infrastructure as post-Enron shockwaves have forced cash-strapped energy companies to increase liquidity by divesting generation assets rather than developing additional [...]

Project finance deals continue to be arranged for Asia's energy sector despite the currency crisis in the region. Thailand, Indonesia and the Philippines may have a slight decline in foreign financing, but most energy projects have been continued. China and India are expected to receive special treatment from banks because of their size. Australian projects, ever since, have been attractive to financial institutions. Among the Asian projects are the Zhuhai Power Project in China, the Malaysian peninsula pipeline in Thailand and the Malampaya/Camago gasfield in the Philippines., In 1996 over $86bn of project finance deals were done in Asia. Neither North America nor western Europe could match that figure. As evidenced by the list of proposed projects, [...]

The growth in the energy finance business is largely attributed to the increase in refinancing, mergers and acquisitions and project financings accounting. Pricing has dropped to record lows and longer maturities are offered in both developed and emerging markets due to high levels of bank liquidity. Spreads are declining especially in emerging markets. Lenders, however, are trying to offset lower margins by seeking other business from borrowers., Pricing of funds for the energy sector has fallen to record lows and maturities are lengthening on the back of high levels of bank liquidity. But lenders are looking for [...]

The energy financial market registered a 50% increase in loan volume for 1994, reaching a total of $148 billion. In addition, massive bank liquidity has also helped reduce interest rates on numerous energy financial projects. These events have been favorable to several major energy companies such as Statoil, Shell and Montedison. These companies have been able to find reasonable funding for their respective energy development projects., The energy finance market is booming. Volumes are up, pricing is down and the market enjoyed its best-ever year in 1994. With the downturn in the international capital markets, lending [...]

Many electric power generation projects fail to materialize because of the lack of available funding. The most common approaches to financing new projects include balance sheet or 100% equity financing and nonrecourse financing. However, both approaches leave developers and prospective energy buyers vulnerable to a wide range of financial factors. Consequently, energy developers and buyers still have to seek financing through private lending institutions, which are often wary about investing in new electric projects. Energy developers and buyers should ensure that their projects are financially sound to increase their chances of getting private loans., At current levels of growth in the developing world, capital requirements for new electric power projects alone are on the order of US$75 billion to US$100 billion per year. Multilateral [...]

Energy project finance is a financial concept wherein oil and gas reserves of a host country are explored and developed by a foreign entity under an agreement which may either be a concession, production sharing or risk service contract. Its utility involves negotiations between the two parties and the lending banks over title to the oil, political risk, environmental factors and security of the loan. It is used extensively in the developed countries although it may be set aside in favor of borrowing base financing, equity contributions and securitisation., Amongst other things, Energy Project Finance is concerned with the development of oil and gas resources, including extraction, movement, refining and other forms of processing. Energy Project Finance is a [...]

Developers of independent power generation plants are taking the non-traditional path to finance their projects. A precedent move was Sithe Energies's offering of $717 million worth of 144a notes and bonds in 1993 after it obtained a BBB investment-grade rating. Meanwhile, the merits and disadvantages of the dual tranche mechanism and a mini-permanent loan structure remain under debate now that banks prefer short-term club-financing arrangements., Independent power generation projects are being planned worldwide. But to finance them, the developers are starting to look increasingly for non-bank sources of funds. Danielle Robinson, in New York, looks [...]

Citibank has specialised as banker to the energy business since the early days of the industry in the US. Understanding the industry and its needs and focussing on long-term relationships [...]

The financing requirements of the energy sector have traditionally been met with a range of instruments: bank debt, through bilateral lines and the syndicated loan markets; bond issues, in both [...]

PETROLEUM ECONOMIST: In the international capital markets, spreads and overall pricing have widened in the past year for most industry sectors. But what has been the experience recently in the [...]

Trinidad and Tobago's economy is booming thanks entirely to its oil and gas industry. Although just a stone's throw off the northern coast of South America, Trinidad could be a [...]

As oilmen say about the price of oil, the only thing you know for sure is that next week, it will be different. The same could be said of Venezuela. [...]

The developing countries are showing signs of recovery from the economic crisis which hit them in mid-1997. Indications of life can be seen in the energy-related finance sector. In Latin America, several oil receivables securitizations have occurred, which was met with enthusiasm by investors. These deals were interesting because much of the risk was transferred outside of the countries of the borrowers, such as Brazil and Mexico., The recent financial crises left many emerging markets looking vulnerable, but financing is back on the agenda as these countries return to energy risk management. For the past two years, [...]

Energy financiers are becoming more confident in the markets after the debacle of the Asian economic crisis including Russia and Latin America. The amount of loans, project financings and bonds for the first five months of 1999 reached $150 billion, which indicate a possible $350 billion total for the whole year. This is much larger to the little more than $250 billion a year for the two previous years. However, there is still not much activity in the East and Southeast Asian project finance market., In the first five months of this year nearly $150bn-worth of loans, project financings and bonds was raised for the global energy sector. That left the market heading for more [...]

The completion of the Laibin power station in China set a successful financing model for energy projects in the Asia Pacific amid the financial crisis that struck the region. Some of the financing deals which failed were Southern Co's acquisition of Consolidated Electric Power Asia and the Loy Yang B acquisition and refinancing project. This has resulted in more strict lending attitudes among financial institutions. However, Union Bank of Switzerland completed a $662.5 million finance project for Quezon Power Co in the Philippines, another successful financing deal in the region., The recent economic and currency troubles in the Asia-Pacific region has set some projects back, but despite the difficult market environment, well-structured and well-priced plans will always attract strong support [...]

Russia's energy sector requires enormous investment. Its huge financing needs stem from a combination of factors, including the decline in Russian oil production, constrained oil and gas prices, and a heavy tax burden. A number of energy companies, including market leaders Gazprom, LUKoil and Tafneft, have successfully raised needed financing in the international capital markets. However, Russia still needs to address a number of issues to be able to raise the kind of funding it needs for its ambitious investment projects. Several investor concerns are discussed., MAJOR Russian oil and gas companies such as Gazprom, LUKoil and Tatneft have all sought to raise capital from the international markets in the last year. However, in order to [...]

Energy projects in the Asia-Pacific region continue to attract worldwide financing inspite of the area's currency crisis. Banks and financial managers have been busy arranging loans for power projects in Indonesia, China and the Philippines. One of the most successful financing arrangements in the area has been that for Quezon Power in the Philippines, which was facilitated by Union Bank of Switzerland. In contrast, Chase Manhattan Bank's refinancing arrangement for Edison Mission Energy's acquisition of Loy Yang B in Victoria was a failure., The recent economic and currency troubles in the Asia-Pacific region has set some projects back, but despite the difficult market environment, well-structured and well-priced plans will always attract strong support, [...]

The energy finance market reports high volumes propped by excellent bank liquidity and tight competition among commercial banks. The optimistic borrowing environment is even convincing energy companies to enter the syndicated market to make their first-ever loans. However, companies will have a harder time obtaining loans if they are unable to present ancillary business., The energy finance market is enjoying spectacular volumes on the back of substantial bank liquidity and intense competition for business by commercial banks. Borrowers have not enjoyed such favourable borrowing [...]

The European energy sector is a diverse and complex industry in which state-controlled entities vie with major private-sector companies and independents for a share of the oil, gas, electricity generation [...]

THE DAYS when investment banks reigned supreme as financial advisors in the energy field are over. Commercial banks are now competing for this fee-based business, in some cases in place [...]

SOME OF the largest project financings of recent years have been for energy ventures in the Middle East and North Africa (Mena). Now, with lender liquidity and appetite at high [...]

Calgary's Sayer Securities says the Canadian industry raised financings of C$2.25bn in the first six months of 2001, up by 87.9% from S1.l9bn in the same period of 2000. Equity [...]

GRI has file its annual research, development and demonstration (RD&D) program application requesting FERC approval of its budget and program for 2002. The proposed budget of $60 million is for [...]

AEGIS Energy Syndicate has reportedly written its premium income for the year. The parent applied to put in more capital but Lloyd's denied this option on the basis it was [...]

Business needs in both power and gas markets might overcome various technical and regulatory hurdles Pay-for-use (PFU) meters may eventually offer gas distribution companies the promise of generating revenue from [...]

This article takes on a practical and timely project finance issue for developers, bankers, and investors: How can a fair downside case for a merchant power plant be calculated? Typically [...]

CHRISTOPHER M. DYMOND is a senior associate of finance at the U.S. Generating Company in Bethesda, Maryland. RICHARD A. STURGES is a manager of finance at U.S. Generating Company. In [...]

LIKE MANY aspects of Russia, the size of he investment needed over the next several decades to develop the country's energy industry is vast (see Figure 1). The International Energy [...]

MANY EUROPEAN energy companies are hit by unexpected and high environmental costs after completing mergers and acquisitions, says a new survey by KPMG. The consultantancy concludes that this is often [...]

THE MAJORS enjoyed a strong second quarter, thanks to continuing strength in commodity prices and a sharp increase in downstream profits. Although the short-term premium on the oil price in [...]

THE NATURAL GAS monopoly, Gazprom, has launched bankruptcy proceedings against its 51%-owned affiliate, Siberian Urals Petrochemicals (Sibur). The case, being conducted in the town of Salekhard, in the heart of [...]

Dynegy's decision to scrap its takeover proposal has left Enron an the brink of bankruptcy, after a sudden and humiliating demise that has shocked energy and stock markets. The merger [...]

[GRAPHICS OMITTED] A week of new issues--Private corporate Issuer Moody's Currency Nominal Rating Amt (m) Private corporate issues GECC Aaa EUR 400 3CIF A1 EUR 15 DaimlerChrysler Co-ordination A1 EUR [...]

The project finance market is expected to play a major role in the energy sector of Europe, specially with the introduction of the electricity and gas directives. Environmental problems are discouraging the use of the traditional coal, lignite and nuclear sources of power. This has resulted in the increasing popularity of natural gas for electric power production. Thus, there is an increased need for the construction of gas power plants which require the services of the project finance market., If I had a crystal ball to enable me to see where the project finance market was most likely to be active in the next few years, I would expect [...]

Capital markets and bond markets are expected to influence the financial structure of energy development and emerging oil industries. The issuance of investment-grade bonds may affect the size of funds available as seen in the completion of a $1.2-billion bond issue for the Ras Laffan LNG project in Qatar principally arranged by Credit Suisse First Boston. Risk sharing in energy projects is also anticipated. Financial institutions active in the energy financing market are NationsBank, Union Bank of Switzerland and Chase Manhattan., Banks are financing an increasing number of oil and gas projects with increasingly innovative instruments and new sources of funds. Andrew Cavenagh looks at the impact this could have on [...]

The rapid rise of energy consumption in China has led to legislative reforms aimed at attracting foreign investment in energy development. For offshore and onshore operations, the government offers foreign investment contracts assuring protection, production-sharing, revenue-sharing, proper bidding procedures, license grants and exclusive rights over pre-identified blocks. These regulations favoring foreign investors indicate the critical role of overseas capital in China's economic growth., Legal and fiscal reforms are enticing foreign investment in the energy sector. But the lack of infrastructure for gas and oil supply and bottlenecks in coal transport mean that China [...]

The former Soviet Union (FSU) badly needs economic assistance to boost its energy investments but has not been able to attract the necessary funds so far. Equity financing is not yet fully developed in the region, leaving third-party loan funds as the main source of major funds. Some of the energy loans that have been obtained have been secured through institutions such as EximBank and the European Bank for Reconstruction and Development. The FSU needs approximately $20-25 billion just to maintain its current energy production levels, Ben van Gils, partner and head of energy services at Moret Ernst & Young in the Netherlands, reviews the energy funding needs of the FSU. He finds that lending remains [...]

Financial institutions have been actively involved in the financing of oil and gas projects since the pioneering years of the energy industry. Technological advancements in oil and gas exploration and production led to the development of several lending techniques such as extended financing terms based on projected oil earnings. Meanwhile, the emergence of alternative funding sources that are willing to provide low-cost, long-term funding for small oil companies has prompted traditional lenders to offer special and more structured forms of finance., Chris Morphett, assistant director at Barclays Energy Finance, charts the growth of commercial finance in the development of the world's oil and gas industry. As the industry has expanded, lending [...]

The recent success of Fina Exploration Norway Utenlandsk A/S' tighly-priced, $150 million facility has stimulated the refinancing trend in the industry. The $150 million syndication, arranged through Barclays Syndications and Citibank International, has received a remarkable level of support from the market attracting commitments of $350 million. Among the companies seeking new bank financing are Elf Aquitaine Norge A-S and Qatar Gas Co., Tighter pricing in the Euro-loan market is attracting fresh interest from the top foreign operators in the Norwegian sector of the North Sea. In the early 1990s, most of the [...]

Less development aid is available for energy projects, a message reinforced by the MD of the International Monetary Fund (IMF), Michael Camdessus, who called for private sector involvement. The World Bank has increased lending for environmental projects and is seeking an assessment of the environmental impact of any energy projects it funds. The World Bank is also aiming at energy conservation, which should mean that funding will go further, but there is still likely to be a shortfall in funding of energy projects., THE worldwide callf or energy sector financing has never been louder. Unfortunately, writes Ed Symonds, we now have it from the highest authority on official development assistance that the sources [...]

The rapid growth of pipeline construction in the former Soviet Union states and elsewhere will require massive capital funding. With annual costs currently running at around $20 billion, the energy sector will have to take into consideration the financing criteria of equity investors and loan sources to raise cash. Besides commercial banks, they may raise capital from state-owned energy firms, pipeline operators, export credit agencies or the supranational lending agencies., FINANCE for the construction of pipelines forms a significant and indispensable share of the international oil and gas industries' growing needs for capital investments. Pipelines have always been one of [...]