Making Infrastructure and Project Finance Debt Bankable in Higher-Risk Markets: A Practitioner’s Guide to Sovereign Guarantees, Export Credit Agency (ECA) Guarantees and Political Risk Insurance
By National Standard Finance LLC (www.NatStandard.com)
In emerging markets and higher-risk geographies, infrastructure projects often fail to reach financial close for a familiar reason: credit risk overwhelms otherwise sound economics. Even when demand is real and engineering is solid, lenders price political, convertibility, off-taker, and payment risks into margins, tenors, covenants, and reserve requirements often to the point where the capital structure becomes non-viable.
National Standard Finance LLC (NSF), a U.S.-based global infrastructure investment and advisory firm focused on sovereign and government-linked infrastructure and project finance, has long emphasized that “bankability” is engineered as much in the legal and credit architecture as in the technical design. A...
