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LatAm infra markets struggle to shake off corruption

LatAm infra markets struggle to shake off corruption

September 26, 2017 | Guest Contributor
Project finance in Latin America is having another tough year as the effects of the Odebrecht bribery scandal rattle the region. Now political uncertainty in major economies may limit deal flow even further

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If 2016 was a year of cautious optimism in Latin America’s project finance market, then 2017 feels like a time of hopeful pessimism. Last year’s downturn is dragging on, and the expectations that the number of deals would build back up in a matter of months have been frustrated. Project finance deals slumped 30% in 2016 and have not shown signs this year of returning to 2015 levels. Debt and equity funding came to $13.8 billion in the first half of 2017, flat on $13.6 billion in 2016, according to data from Dealogic. By contrast, $18.6 billion in deals were closed in the first half of 2015. The number of projects that reached financial close was fairly constant in each of the three periods,

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