Infrastructure and Project Finance

As a result of the 2008 financial crisis, market risk is a major concern among today’s infrastructure investors, given the low absolute returns on investments with long time horizons. These are particularly sensitive to interest rate, inflation, and foreign exchange risks. The ability to hedge currency risk and the resulting deficit of local currency debt is the greatest challenge to infrastructure development in most emerging economies and some developed ones. It is also a barrier to portfolio and investor diversification. Asset-level risks can tip projects into insolvency and management techniques are even more complex, expensive, and difficult to integrate with financing structures. Chatham’s Global Infrastructure and Project Finance team is the only independent hedging and market risk advisory service dedicated to the Infrastructure sector. Our advisory services, coupled with market-leading technology, offer unrivaled skill in untangling these issues, reducing downside risks, and releasing principal resources for core value-adding activity. We support clients over the entire derivatives and risk management life cycle, including strategic planning, risk management framework design and implementation, portfolio valuation, reporting, and system of record. We also provide portfolio FX hedge structuring, asset level transaction advisory for interest rate, inflation, and FX risks, hedge accounting, and derivatives regulation.