IFT - Infratil

[kiora]

Wonder if this will impact long road at all

https://acore.org/resources/the-risk...y-investments/

Unlikely?

https://acore.org/resources/the-risk...y-investments/

"The Risk Profile of Renewable Energy Tax Equity Investments"
"Conclusion

The federal renewable energy tax credit program, with its proven track record, continues to be a driving force behind the ongoing energy transition. Through tax equity investments, banks will continue to play a pivotal role in monetizing these tax credits and creating significant liquidity in the market.

Renewable energy tax equity structures have protective features that shield investors from project risks and protect their returns even in downside cases. Tax equity investments are not speculative in nature and have a different risk profile than traditional equity investments, with their value driven primarily by tax benefits. The tax equity investor’s position is senior to the project sponsor’s junior equity, providing a priority in earning returns and avoiding structural subordination to long-term debt. These investments are underwritten to be robust and are structured to perform well under various stress scenarios. As recognized by the OCC, tax equity has more loan-like characteristics than true equity investments.

Moreover, the historical performance of exited renewable tax equity investments, as well as projections for current investments, demonstrate overwhelmingly positive yields. The risks from recapture, foreclosure, and bankruptcy have had no or significantly limited impacts on investors’ overall portfolios. Absent new policy impediments, the low-risk profile of renewable tax equity will continue to attract considerable capital from banking investors seeking stable returns."