New opportunities to strengthen the pivotal role of lenders
As lenders, commercial banks not only supply much-needed capital to achieve development goals. They also have an interest in how their clients’ projects are run. As valuers they price risks and estimate returns. And as innovators they develop new financial products to address local opportunities.
There is another important aspect to meeting the vast demand for energy projects besides opening new opportunities for to tap into a growing market of significant long-term projects: Lenders will also be in a better position to develop attractive financial products that will further cement their role in the local economic fabric. And secure solid margins on these new revenue streams.
Reduce exposure, improve risk-return profiles and tap new revenue streams
Financing energy projects is now safer with AEGF-backed insurance products. First, there is the extra reassurance of coverage for the risks that so far have proved insurmountable obstacles to financing. Second, AEGF will only get involved in projects that are aligned with SEforALL goals. Third, coverage transparency and customization ensure that the cost of extra peace of mind does not hurt the lender’s bottom line.
With AEGF in the equation, commercial banks will have much better visibility on price evaluation and can more effectively optimize risk-return profiles and furthermore tap the full potential of feed-in tariff projects.