INFRASTRUCTURE projects in Asia have received a boost as export credit agencies pledged their support, without asking for commercial banks' guarantees, to Consolidated Electric Power Asia's (CEPA's) Sual thermal power project in the Philippines.
Seen as the largest private financing venture in that country, the US$1.014 billion project financing has attracted European export credit agencies.
'It is the first time western European export credit agencies took only limited recourse on a major project,' said HSBC Capital associate director Chris Bailey, financial adviser to the project.
'The clear policy decision has opened up a whole new source of funds for other project finance in Asia,' he said.
The breakdown of the $1.014 billion loan facility is: UK Export Credit Facility with $445.2 million; French Export Credit Facility with $154.3 million; US Export Credit Facility with $150 million and the International Financial Corp (IFC) with US$196 million.
The rest will come from IFC's other loans and loans from Commonwealth Development Corp.
The loan will mature in 15 years.
