What is project finance and how does it tie to stock growth?

What is project finance and how does it tie to stock growth? With renewable energy projects rising, project finance structures are creating predictable revenue streams; this steadies share prices in firms such as major solar ETF holdings up 5% YTD. At the heart of MIGA’s mandate is protection against political risks that can derail otherwise bankable projects. The first area of focus in due diligence is the risk of expropriation and breach of contract. Counsel must examine whether host-country laws allow governments to unilaterally alter concessions, licenses or regulatory frameworks, and whether stabilization clauses and enforceable arbitration provisions are in place (International Centre for Settlement of Investment Disputes (ICSID), United Nations Commission on International Trade Law, New York Convention signatory). A robust legal foundation here ensures that investors have recourse if state action undermines their contractual rights. This is part of the financing structure for the project, on which Ørsted simultaneously is progressing as planned with an equity divestment expected to be completed once the project is operational. The transaction ensures further progress on both Ørsted’s partnership and divestment programme and its strategic priorities.