Magazine article American Banker

Chase, in a First, Creates D.C. Office to Drum Up Business in Project Finance

Magazine article American Banker

Chase, in a First, Creates D.C. Office to Drum Up Business in Project Finance

Article excerpt

WASHINGTON -- Chase Manhattan has opened a new office here and placed Dwight L. Bush at the helm.

Though politically well-connected, Mr. Bush is not here to lobby lawmakers or banking regulators. He is in Washington to drum up business for the bank's global power and project finance division.

In project finance, a bank supplies the capital needed by a developer, such as an independent energy producer. Assets of the project and contracts-for oil or gas, for example-serve as the security for the debt.

Looking for Projects

Mr. Bush, 37, works with developers to identify successful projects, line up the contracts, and in some cases secure guarantees or additional financing from government agencies such as the World Bank.

Among banks in project finance, Chase appears to be leading the way to Washington.

"We're the first," Mr. bush said. "I hope they don't all come down here."

Only a handful of big banks do project finance, mainly because it is time-consuming and complicated, Mr. Bush said. But done right, he said "the returns are very much above average."

Top Rank

Euromoney magazine rated Chase No. 1 in global project finance last year.

Developers in this region are not being called on by banks, Mr. Bush said. Chase already does business with Virginia Power, and Mr. Bush hopes to expand to many of the other big power companies along the eastern seaboard, such as Florida Power and Light.

Chase doesn't just lend money. In fact, the bank prefers to arrange other financing, such as issuing bonds or arranging private placements of securities, Mr. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.