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
  • military housing*

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.

 

* As of December 31, 2020, our military housing portfolio included 40 exposures totaling $2.5 billion of net par outstanding.

$726,160,000 PILOT Revenue Refunding Bonds

 

(Yankee Stadium Project) Series 2020A (Tax Exempt) and Series 2020B (Federally Taxable)

 

Assured Guaranty Municipal insured more than $726 million of a $927 million PILOT Revenue Refunding bond issuance by the NYC IDA for the Yankee Stadium Project to refinance most of the outstanding Series 2006 and 2009 PILOT Bonds and provided partial debt service reserve fund sureties.

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$551,535,000 PILOT Revenue Refunding Bonds

 

(Queens Baseball Stadium Project) Series 2021A (Tax Exempt) and
Series 2021B (Federally Taxable)
(“Citi Field Stadium”)

 

Assured Guaranty Municipal insured the full $551.5 million PILOT Revenue Refunding bond issuance by the NYC IDA for the Queens Baseball Stadium Project also known as Citi Field and the home of the New York Mets baseball club and provided debt service reserve fund sureties. The Series 2021 PILOT Bonds were issued to refinance all of the outstanding Series 2006 and 2009 PILOT Bonds.

 

Both of these stadium transactions generated significant debt service savings and helped position the stadiums strongly for the effects of the COVID-19 pandemic. Our insurance reduced the all-in cost of the financings. In addition to our guaranty of full and timely debt service payment, our participation includes the underwriting and surveillance of 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
  • Chris Jumper
  • Director
  • 212 261 5514
  • Email
  • Sam Nakhleh
  • Director
  • 212 261 5522
  • Email