The development and execution of energy projects at an international level usually means being exposed to different financial risks such as:
- Currency: energy projects tend to have high costs in foreign currencies (USD, EUR, local currency),
- Interest rates: energy projects are usually accompanied by complex financing structures that require the contracting of long-term interest rate hedges (swaps, caps, …)
- Commodity: Many projects have long-term financial or physical energy price hedging contracts (PPAs, swaps…)
Variance Financial has extensive experience advising corporations and investment funds specialized in renewable energy that operate internationally, simplifying the management of financial derivatives, from the definition of the strategy, to the execution, valuations and application of hedge accounting.