Wind debt finance trends for the inflation era

European and US markets have seen higher bank costs in some wind project finance deals, as countries hike interest rates to contain record levels of inflation.

Project investors, too, have taken note of the impacts of inflation on capital costs, finding that in some cases construction bank debt margins have become wider, as the costs for securities rise across the board. The rising costs for both debt and equity financing account for greater risks on the part of project backers, among other things.

Meanwhile, bank margins on wind power projects are being tempered by their growing appetite to invest in green energy.

Dynamic prices for both construction costs and revenues, all key inputs for advisors and stakeholders involved in wind project finance, look set to continue.

How will the uncertainty change the way that stakeholders approach wind finance transactions, and what can they do to avoid project cancellation?

This exclusive report puts questions to the experts:

• Lisa McDermott, Managing Director, Project Finance, ABN AMRO Bank
• Jérôme Guillet, Board Member at Enterprize Energy and Founder of Green Giraffe  
• Piotr Nerwiński, Partner in Banking and International Project Finance, Dentons
• Keith Martin, Co-Head of Projects and Partner, Norton Rose Fulbright US