More than five years after the Lehman Brothers crisis, and despite gradual improvement, bank liquidity within the project finance market remains constrained. As a result, since the Lehman Brothers’ collapse in September 2008, sponsors and lenders have developed various techniques to bridge the liquidity gap. Broadly speaking, the result has almost inevitably led projects to use multi-source financing plans, in which funding is provided from different types of lenders often using different types of financial instruments. As a consequence, project financings have become more complex. This added complexity results in a number of challenges to executing transactions. In "The Multiplicity Factor," soon to be published as the opening article in the 2014 edition of The International Who's Who of Project Finance, Shearman & Sterling partners Cynthia Urda Kassis (New York) and Ben Shorten (Singapore) examine some of these challenges and the techniques that can be used to address them.View the article, The Multiplicity Factor: Challenges to Executing Transactions in the Project Finance Market and the Techniques Used to Address Them
