Project Finance

Assured Guaranty credit enhancement can be the critical element in bringing complex project financings to market.  Large-scale public infrastructure projects involve numerous “moving parts”  -  multiple specialized contractors that must work together to finish a project on time, private developers and operators on whose long-term performance and financial stability the project depends, and numerous economic and operating variables that must be understood and quantified.  As guarantor, we analyze these elements, negotiate terms and conditions that enable us to insure a transaction, conduct due diligence and monitor performance at every stage of project construction and operation until the financing matures.

Our guaranty simplifies the transaction for investors, making participation possible for those who would otherwise be deterred by the transaction costs of analysis, negotiation, surveillance and, potentially, remediation. For the life of the transaction, we serve as a single point of contact and, should problems arise, can generally identify them early and apply our experience to work constructively with issuers.  Our capital is committed, and we have every incentive to help the transaction succeed.

Our Project Finance team has experience in a broad range of project sectors, including

  • greenfield toll roads
  • airports and other transportation facilities
  • stadiums
  • government facilities
  • electric generation plants
  • waste-to-energy facilities
  • environmental projects

Underlying projects must serve essential public purposes.  Depending on the transaction, we can participate in a variety of financing structures, including federal lease transactions and public-private partnership (PPP) financings.

Increasing numbers of U.S. issuers are considering the PPP model as an efficient way to develop new infrastructure or monetize existing assets.  We know the structure well, having participated extensively in PPP transactions in Europe, where the model is well tested, and in early applications in the United States.

$101,400,000

Tax-exempt Private Activity Bonds

(The Goethals Bridge Replacement Project)

 

Series 2013

 

Assured Guaranty Municipal insured more than $101 million of a $461 million bond issue in connection with a public-private partnership sponsored by the Port Authority of NYNJ. The partnership was created to design, build and maintain a replacement for the Goethals Bridge, an 85-year-old span that connects New York City to New Jersey, and the existing bridge will be demolished once the replacement is completed. Our insurance reduced the all-in cost of the financing. In addition to our guaranty of full and timely payment, our participation includes the underwriting and surveillance of construction and operational risks, allowing certain investors to participate in project financings they might not otherwise invest in due to the lack of appropriate internal resources.

Contact Information

  • Lorne Potash
  • Managing Director
  • 212 261 5579
  • Email
  • Sam Nakhleh
  • Director
  • 212 261 5522
  • Email