Project financing is recovering from the fall-away seen in early 2009, buoyed by growth in Asia, but developers have to look at a mix of funding options for their schemes, industry experts say.

Investors looking for project-specific funding for infrastructure such as roads, power plants and oil and gas pipelines have increasingly met reluctance from banks, which are less keen to provide long-term financing.

This is because around 80 to 90 percent of loans that banks provide are short-term, between one and three years, leaving project finance which traditionally relies on loans with maturities longer than ten years to suffer from the liquidity crunch.

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Posted by mopeng at March 16, 2010 1:31 PM