While project bonds have been used since the early days of the project finance market, varying project structures and market factors make them the sort of product that becomes most popular during certain periods and less during others. It happens that current conditions are making the market ripe for project bond issuances, both in and outside of the United States. This point is proved out by the increased volume of project bonds in the market. Additionally, given the attractiveness to project sponsors of the long tenors and liquidity offered by the project bond market, there is a push by market participants to find ways of expanding the types of transactions for which project bonds may be used. Shearman & Sterling partners Robert N. Freedman (Project Development & Finance), Robert C. Treuhold (Capital Markets) and Cynthia Urda Kassis (Project Development & Finance) authored the attached article, Prepping for Project Bonds, on this topic.
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