Energy storage project bonds

Can LPO finance energy storage projects?

LPO can finance short and long duration energy storage projects to increase flexibility, stability, resilience, and reliability on a renewables-heavy grid. Why Energy Storage?

Are project bonds a viable alternative to bank loans?

Thankfully, the capital markets have a solution to offer. Project bonds – an attractive and now well-established alternative or complimentary financing method to traditional bank loans – could be the answer. This is even more so in the renewables space as a result of the recent boom in the use of green bonds.

How does a project bond work?

The issuance of a project bond will typically require the preparation of an offering memorandum or other offering document in accordance with applicable securities laws and/ or stock exchange listing rules. Accordingly, both the Issuer and the project will be subject to an in-depth review by several parties.

Can project bonds be used in a project financing arrangement?

Whilst the specific challenges that project bonds pose when used in a project financing arrangement are complex, they are by no means insurmountable and with the help of experienced professionals, project bond financings can be structured in a way that offers a viable alternative solution.

Why are project bonds on the rise?

The stricter monitoring/disclosure and liquidity requirements faced by banks in the wake of the global financial crisis mean that projects can often no longer be funded by traditional bank debt alone. The debt capital markets have stepped up to the challenge and project bonds are on the rise, particularly amidst the green finance boom.

What is a green bond?

“Green bond” is a label used for bonds which proceeds are earmarked for the financing of green initiatives. Demand for green bonds has been on the rise ever since the World Bank issued the first green bond in 2008.