Project finance picks up

The regional project finance market has been mauled by the credit crunch resulting in a raft of cancelled deals – but it has recently shown a glimmer of life.

In June, Qatar’s Nakilat raised $949m to pay for liquefied natural gas ships. Financing deals for three large projects – $1.7bn for Bahrain’s Addur power and water project and two multi-billion dollar deals in Abu Dhabi – are expected to close shortly.

It is still a far cry from the happy days of only last year, when major deals became routine and banks jostled for business, bringing prices down. Senior bankers say the project lending market is still shell-shocked from the turmoil of last autumn.