Cost of Capital: 2025 Outlook

The market enters a period of uncertainty as a new administration takes office in Washington. The US base borrowing rate, SOFR, hovered a little over 5.3 percent for most of 2024 before falling to 4.8 percent in mid-September and falling further to 4.6 percent after the November election and to 4.5 percent at year end.

Corporate debt issuances soared to a record level in 2024. Developers rushed at year end to start construction to insulate projects from tax law change. Tax credit sales remained strong all year.

Join a conference call among a group of project finance industry veterans about what to expect in the year ahead for tax equity, tax credit sales and debt.