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Tenor constraints hit US power project financing

15 February 2012

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Power project sponsors and lenders are pessimistic about the state of the project financing market in the US in 2012. Pricing is expected to stay in its current range between 250bp and 275bp over Libor for strong projects with strong sponsors, most tenors will remain at 10-years or less and mini-perm structures will continue their renaissance, said speakers at Euromoney Seminars and Project Finance's US Power and Renewable Finance conference in New York this week.

Capital is available for projects. The expansion of Japanese banks in the sector...


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