Project finance in the United States has staged a vigorous recovery— aided by the ability of banks to provide liquidity, low funding costs, and a more liquid bond market—since the initial dampening effect of the COVID-19 pandemic, according to the project finance team at Mitsubishi UFJ Financial Group (MUFG).
The team delivered its remarks at a virtual MUFG media roundtable last week to discuss the current state of project finance. Erik Codrington, head of project finance in the Americas, cited four main factors that have largely remained intact since before the onset of the coronavirus pandemic, and that are driving heightened project-finance activity in specific areas:
Energy and environmental policy: Throughout the Northern Hemisphere, policies “are driving a continued large build-out of renewables, especially in the U.S. and Canada, as renewables take market share away from coal and nuclear power generation,” said Codrington.
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