Project finance is a natural complement to trade finance, offering enhanced diversification and attractive risk-adjusted returns.
Fast reading
- Project finance supports the underlying infrastructure that makes trade possible.
- Federated Hermes focuses on operational and expansionary infrastructure project financing, secured on infrastructure assets that generate steady cash flows.
- We invest in limited-tenor loans that fund well-established, large-scale projects in emerging as well as developed markets.
Trade finance introduces third parties into the export-import relationship, simplifying payment and delivery, which enables counterparties at great distance from one another to conduct business efficiently. Trade finance is essential for facilitating commerce and enabling the global movement of vital goods between producers and buyers. Trading routes require significant investments in infrastructure if they are to thrive. Project finance supports the creation, development and expansion of critical infrastructure assets such as ports, terminals and airports, along with power generation and transmission facilities.
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