Currents Ep262: PEI Global Partners on the Development Loan Sector
Aug 22, 2024
John Bills, a partner at PEI Global Partners, shares insights into the development loan sector, emphasizing their pivotal role in energy and infrastructure. He discusses trends in buyer behavior and the rising demand for sustainable projects, highlighting the necessity for customized financing for early-stage renewable developers. Bills also explains shifts in corporate financing facilities since 2020, advocating for tailored solutions to navigate today's complex financing landscape, while urging a reevaluation of traditional risk perceptions within investment communities.
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Evolving M&A Market
- More buyers are willing to take on pre-NTP projects earlier, changing the M&A landscape.
- Increased demand for green electrons and educated buyers drive higher premiums for well-developed projects.
Development vs. Corporate Facilities
- Lenders view development as risky, preferring financing at NTP or operation stages.
- Corporate facilities address this by blending risks and catering to IPPs with diverse needs.
Understanding Corporate Facilities
- Corporate facilities provide loans, revolving credit, and LC facilities for business growth and project development.
- They offer tailored financing solutions for developers and IPPs to manage projects and access capital from commercial banks.