You’ve hit the nail on the head with those comments.
The banks are the ultimate arbiters of financial risk, hence sovereign risk itself, so if the company gets funded and makes its final investment decision this quarter as foreshadowed in its announcements the risks will be by definition acceptable but not necessarily zero. There are always risks in these countries. Having a short pay back and a high IRR reduces the risks for the financiers as their exposure to the sovereign risk is shorter but I’d say if they view the country risk as too high they would just not lend.
If WAF don’t get the funding and FID this quarter I’d say some cracks might have formed. The lastest announcement has both these things happening this quarter (see figure 1). Esh
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