HSBC projects head speaks out on LatAm structures

Author: Danielle Myles | Published: 1 Sep 2011
Don’t forget the local banks

Hydropower developers in Chile and Peru are pushing to structure smaller projects on a merchant basis. Lenders in the region admit a slowly increasing appetite for more aggressive revenue strategies.

This marks a change for post-crisis project finance in Latin America. Lenders have been demanding certainty of cash flow through long-tenured power purchase agreements (PPA) and have been reluctant to fund projects relying on spot sales or short-term contracts.

Speaking at an International Project Finance Association (Ipfa) seminar on July 7, Raphael Dumas, an HSBC director...