Project finance back from the dead
14 January 2010
Government stimulus packages directed towards major infrastructure have helped the Asian project finance sector stage a major recovery.
'The global financial crisis put the brakes on project finance deals 12 months ago,' said Allens Arthur Robinson (Allens) Project Finance Partner Phillip Cornwell. 'We are now seeing the sector perform a significant and quite remarkable recovery in our region.'
Dealogic figures for 2009 show that while global project finance volume was down 9 per cent to $US292.5 billon, Asian volume was up 57 per cent to a record $US104 billion.
Allens undertook the largest number of project finance deals in the Asia Pacific in 2009, including being the top ranked firm in Australasia with $US4.9 billion of transactions, and was placed among the top 10 legal advisors in the world.
'The stimulus packages put in place by the Chinese Government in particular, which have helped drive trade and a recovery in commodity prices, have led to a very strong turnaround in Asia,' said Mr Cornwell.
'This time last year the main hope for the project finance sector was significant Government investment. That's occurred and, as a consequence, we're already seeing private sector financiers returning in numbers and willing to put their balance sheets behind major projects in the Asian region.'
Two of the 10 largest deals globally in 2009 were a LNG project in Papua New Guinea and a desalination plant in Victoria, Australia, with Mr Cornwell predicting major infrastructure and energy projects would continue to be the mainstay project finance transactions in 2010.
'Not only are we yet to see the full flow through of Government stimulus packages but the growing energy needs of Asian economies will encourage significant private sector investment in major projects,' said Mr Cornwell.
Ends
For further information, please contact:
- Jane FoleyCorporate Communications Coordinator,
Melbourne
Ph: +61 3 9613 8503
Jane.Foley@aar.com.au
Notes for editors.
Allens Arthur Robinson has staff in 14 cities and eight countries across the Asia Pacific.
