The Gulf Cooperation Council remains in the grip of an infrastructure super cycle that requires project sponsors to seek out the most efficient funding solutions. This places project finance firmly in the frame, with interest piqued by developers’ preference for financing models that match long-term concessions with long-term debt.
“There is a collective appreciation for international capital and international resources and skills that is creating healthy competition in the region, which has not been seen before. This is fueling some of the project finance boom,” Bracewell’s Andrej Kormuth told MEED Media.
While traditional sectors such as power continue to dominate, new sectors have come to the fore that are suitable candidates for project finance, including battery storage.
“These projects are being developed on a very large scale, which gives rise to new challenges from a financing perspective, in terms of considerations for things like split procurement and battery degradation, which are not necessarily features of wind and solar project financings,” Bracewell’s Oliver Irwin added.
