Multilateral agencies and ECAs’ affect on
infrastructure finance structures revealed
The past two years have seen a resurgence of multilateral
and export credit agency (ECA) activity in Latin American
infrastructure financings. A combination of market and
regulatory developments has created conditions ripe for these -
plus local - sources of funding. The most obvious are of course
the Basel III and Dodd-Frank reforms which, when combined with
the fallout from the financial crisis, has stifled
international commercial banks’ appetite to invest
in the region’s long term projects.
But there are important changes at a regional level too.
Projects are increasingly bigger and need more lenders, local
markets are flush with liquidity, and there’s been
a flurry of ECAs granted direct lending approval. Chile, Peru
and Brazil also benefit from 10 to 15 year build-out plans
based on their governments’ economic
"That changes the whole dynamic of doing projects in...