- Jonathan Lindenberg,
Head of Structured Finance
for the Americas
- Trophy Deal in 2013:
- In May 2013, MUFG acted as a Joint Lead Arranger/Joint Bookrunner for the US$7.7 billion Sabine Pass Liquefaction LLC expansion financing, the largest U.S. deal closed on record. The first Sabine Pass transaction in July 2012, for which MUFG also acted as a Joint Lead Arranger, was the first LNG liquefaction project financed in North America. The follow-on upsizing of the financing in May 2013 supports the expansion of the project. The funding approach sets a precedent for other LNG export projects to come. Both the first and expansion financings received Americas Deal of the Year Awards from Project Finance International magazine.
- Market Reflection:
- The Americas project finance transaction volume jumped by 31.1% to US$51.4 billion in 2013. The United States reclaimed its position as the largest single project finance market in the world, driven by gas-related infrastructure including Sabine Pass, pipelines, and gas-fired power generations. Canada made a modest recovery in 2013 totaling more than US$6.3 billion with activities in the renewable energy and infrastructure sectors. Chile led Latin American activity in 2013 with US$5.1 billion, or 9.9% of the Americas totals. Liquidity is increasing and diversifying, encompassing European and Japanese commercial banks as well as project bonds and institutional investors. Within these market dynamics, MUFG has maintained its status as the top arranger in the Americas project finance market for the past four consecutive years.
- Market 2014 forecast:
- The drivers of growth in the Americas’ transaction volume in 2013 are expected to continue into 2014. North American deal flow will remain strong as it shifts from renewable energy to large oil & gas projects and the replacement of aging infrastructure. Canada will continue to be one of the most active infrastructure financing markets in the world, with a number of large transit and road projects coming to market. Latin America will continue to be a source of growth in project finance volumes in the Americas, with activity across various countries such as Mexico, Brazil, Peru, Chile, and Colombia.