The Scottish Energy Forum’s latest London discussion, hosted by Ashurst, brought together panellists with first-hand market experience to explore how energy companies are navigating alternative financing options in a more selective capital market.
Their insights pointed to a market that is deeper, more liquid and more varied than it was only a few years ago. Familiar instruments have taken on new relevance as credit appetite returns and energy companies look beyond traditional bank lending. The result: a broader toolkit, and one that rewards borrowers able to match structure with strategy.
A clear message from the panel was that capital structure matters. RBLs, high-yield bonds, pre-pay arrangements, off-take financing, inventory monetisation, private credit and hybrid instruments all have a role to play, but none is a shortcut. The strongest businesses are building funding stacks that are simple enough to manage, flexible enough to endure and credible enough to sustain long-term investor relationships.
Execution was another recurring theme. For borrowers, early engagement and a well-articulated strategy can make the difference between interest and commitment. Relationship-led products such as RBLs and pre-pays demand groundwork, trust and continuing dialogue. Bond markets, by contrast, can move fast and close faster and companies need to be ready when the window opens.
On equity, panellists noted that it remains part of the answer, particularly for M&A-led growth, but rarely an easy one. Issuance can be costly and difficult to time. The discussion pointed towards a more integrated approach, treating debt, structured finance and equity not as separate steps, but as interlocking pieces of one funding plan.
The debate also reflected a changing political and commercial backdrop. Energy security has sharpened the conversation around oil and gas, bringing a more pragmatic tone to transition finance. ESG considerations remain embedded in credit processes, including emissions performance, reporting, health and safety, and broader operational responsibility.
The outlook was cautiously upbeat. Liquidity is returning, capital is available and energy resilience is again attracting serious attention across geographies.
The winners will be those able to move with discipline: flexible in structure, pragmatic in outlook and alert to the connections between security, transition and growth.
A warm thank you to Ashurst for hosting us, to our panellists for sharing such thoughtful insights, and to everyone who joined and contributed to the discussion.