Funding P3s
Developers faced dramatically more expensive financing markets in 2022 as the Federal Reserve raised interest rates in response to stubbornly high inflation. Even so, P3 projects secured record amounts of capital to reach financial close. In 2022, almost USD 20bn dollars in SPV and holdco-level debt were secured in the US P3 market, with both loans and bonds highly increasing their YoY values. PABs figures experienced their record year in 2022, driven by large deals such as the redevelopment of JFK Terminal 6, the financing of Maryland Purple Line, and the financial close of the Pennsylvania Major Bridge Program.
In this panel, experts will discuss what are the best strategies for financing projects in a high volatility environment.
- How much capacity do banks have to provide construction financing?
- How can developers take advantage of TIFIA and WIFIA financing? PABs?
- What other sources of debt and equity capital are available?
- If the US enters a recession, how concerned should developers be about the financial strength of state and local governments?
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