The success of the European Investment Bank’s (EIB) recently approved project bond programme will depend on the efficacy of the first deal template, lawyers have said.
Following parliamentary approval this month, the pilot phase of the EU 2020 Project Bond Initiative’s (2020) will launch this summer. Up to €230 million is to be deployed by the EIB during this phase, and that has been at the forefront of sponsors’ minds. In certain industries, the public sector is requiring private sector bidders to use the EIB’s 2020 support.
While the programme is expected to ultimately succeed in establishing capital markets as a more mainstream source of project finance, much is dependent on a successful blueprint...