Ed Zaelke Quoted by Law360 on 2015 Renewables Market Trends, Yieldcos
Akin Gump global project finance practice head Ed Zaelke was quoted by Law360 for its article “Yieldco, Oil Slumps Highlight 2015 Energy Finance Trends” on project financing and yieldcos, public companies that are created around operating assets, such as projects, that produce a predictable cash flow.
The article notes that yieldcos were popular in the first half of the year among renewable energy developers, but that investors turned away from the vehicles in the second half, as yieldcos’ popularity meant too few viable projects for them to fund or purchase. This, in turn, Law360 reports, meant both lower rates of return for the vehicles and fewer sources of funding for developers.
Zaelke characterized this swing as, “2015 was the tale of two markets. The first half was all about M&A activity in the renewable space, primarily going to yieldcos. The second half has been about project financing and mezzanine ownership deals to move projects forward.”