Australia: world’s biggest market for project finance in 2012
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Australia was the largest and one of the fastest growing project finance markets in the world in 2012, according to Thomson Reuters Project Finance Review.1 Australian-based projects secured US$42 billion of financing during 2012, a sizable increase of 70 per cent compared to 2011. Its value accounted for over one-fifth of the global total. Five of the world’s top ten largest projects, were in the oil and gas sector with total loans of almost US$37 billion.
Global project finance market showed a significant decline in 2012, with 532 deals valued at US$195 billion. This represented a decline in total loans of 12.6 per cent compared to the previous year.
Despite recording a 7.5 per cent decline in 2012, Asia-Pacific project finance market excluding Japan remained the world’s largest, with total loans of US$85.8 billion. The region accounted for 43.9 per cent of global activity. This increased from a global share of 41.5 per cent in 2011. The major driver of the regional activity was the oil and gas sector which was up 34 per cent last year.
Australia’s project finance, mainly driven by the strength of the energy and resources sectors, was the largest and one of the most active in the world. The country’s project finance rose by 70 per cent from 2011 and accounted for 21.6 per cent of the global total. Its share was almost double from 11.1 per cent in 2011. In the Asia-Pacific region, Australia’s market was as big as that of the combined value of North Asia, Southeast Asia and South Asia.
Among the Asia-Pacific top ten largest projects, five were from Australia, including four oil and gas and one water and sewerage. The value of these five Australia’s deals was US$30.8 billion, accounting for almost three quarters of the top ten project values (US$41.4 billion). Australia’s four major banks all ranked within the top 20 mandated arrangers.
Europe, Middle East & Africa (EMEA) based projects secured just US$68.3 billion of financing during 2012, a significant fall of 24.6 per cent compared to 2011. However, the Power industry grew by 4.5 per cent to become the largest industry in the region with total deal of US$22.3 billion. The UK remained the leading project finance market in the region, followed by France, Russia and Germany.
The Americas, saw US$38.9 billion of project finance related loans, virtually unchanged to the value in 2011 (up just 0.8 per cent). The US, led by one major project (US$5.6 billion) in the oil and gas sector, was the largest market with total loans of US$18.3 billion in the region
Sean Rothsey
About the core competencies and key strengths of the manager: Sean Rothsey has been a director of listed and unlisted private and public companies in Australia and NZ since 1981 and has been involved in the listing (IPO) or reverse listing (reverse takeover) and private placements of many companies in Australia , NZ South Africa and London from start up to < 1 Bil. He is the immediate past chairman and long time director of ASX listed diversified financial services company MDS Financial Group Ltd , whose subidiaries include an ASX Particpant (StockBroker) and a director of two of three subisdiaries each holding Australian Financial Services Licenses issued by the Australian Securities and Investment Commission.As a founding Deputy Chairman and director of NISER Ltd he has represented the National Stock Exchange , the Bendigo Exchange and the Taxi Exchange in regional Queensland. Also conversant with financial services regulations in Hong Kong , China Sean and his network have particularly knowledge of Funds Management structuring and compliance in the Bahamas, BVI and the Cayman Islands. Sean is a Committee Member of the Australian Chamber of Commerce Hong Kong and Macau ’s Finance , Legal and Taxation Committee and a reciprocal member of every Asian and Mainland China Australian Chamber of Commerce and can facilitate introductions to the Chamber , Government , business or professionals in Hong Kong and as a consultant can assist you in an unregulated and unlicensed capacity in a buy sell or other transaction ,including introductions to sources of debt, equity and offtake , but makes no legal warranties or representations of any kind as to the Buyer, Seller or Transaction. Sean can also facilitate introductions to licensed entities in a regulated regime where required and can both represent and assist any party in those regimes. The Merkin Group offer advisory and consultancy services in global business and asset management strategies including corporate governance,risk and compliance as well as facilitating outcomes through valued added solutions, introductions or capital.