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Pre-Hedging Strategies: Mitigating Interest Rate Risk in Development Pipelines

Renewable energy project economics are exposed to rising rates between signing of an offtake agreement and financial close. Rising rates ultimately translate to higher interest payments, directly impacting project cash flows and IRR. Infrastructure developers can pre-hedge this risk for projects being financed in the near future. Pre-hedges can take various forms, each with specific use cases and trade-offs.


In this 75-minute webinar, you will learn how to:

  • Use pre-hedging as a strategic advantage in times of volatility

  • Understand the most common concerns related to pre-hedging

  • Identify the best use cases for pre-hedging and when it should be applied

  • Determine and negotiate the most important elements in pre-hedging documentation

  • Navigate the accounting implications in pre-hedging strategies

Level: Intermediate
Advanced Preparation: Some basic knowledge of derivatives is recommended, but not required
Prerequisites: None

Field of Study: Specialized Knowledge
CPE Credit(s): Up to 1.5
Delivery Method: Group Internet Based

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