European project finance is being buffeted by political headwinds, sudden shifts in policy and roiling, economic unpredictability. Brexit is of course a major concern, but so is populist groundswell in many countries on the Continent. Added to that are questions about the future of one of the most active project finance-related sectors – renewable energy.
“In a time of political changes, like there is currently, the project finance market is in flux as well,” said Aaron Konrad, senior analyst project finance ratings for the Berlin-based Scope Ratings.
Scope predicts new project finance issuance this year in Europe to decline, especially during the first two quarters.
West European project finance issuance during the first half of 2016 totaled €39 billion and estimates the entire year put the total at about €70 billion. The rating agency predicts 2017 will total €50-60 billion.
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