There has been a lot of speculation about the direction of project finance lending for PPP transactions in light of the current banking turmoil. Many have concluded that long term loans are no longer feasible in light of the capital and liquidity constraints the banks face. But is this true?
PwC carried out a review of over 20 banks with one-on-one interviews at the beginning of 2009 to find out their lending appetite for PPP transactions and their structural preferences. The responses were striking not only in their diversity, but in the differences in underlying motivations that led banks to their respective positions.