Trade, Project Finance and Private Credit News: 16 Oct 2026
Record private credit fundraising meets falling deployment, Bank of America fined USD 1.2bn, energyRe closes USD 815m solar and IndiGo signs an ECA deal.
Private Credit Has Record Capital and Fewer Deals to Fund
Direct lenders raised more in the first nine months of 2026 than in any comparable period on record, while Q3 lending volume fell 28%. Bank of America takes a USD 1.2 billion anti-money laundering penalty, energyRe closes USD 815 million for South Carolina solar, and IndiGo signs the first Credendo-insured aircraft financing.
1. Direct Lenders Raise a Record USD 129 Billion but Lend Less
Direct-lending funds raised USD 129.15 billion in the first nine months of 2026, up 35% year on year and the highest nine-month total in Preqin data going back to 2016, Reuters reported on 15 October. Deployment moved the other way. PitchBook LCD estimates third-quarter direct-lending volume fell 28% to USD 49.77 billion.
Competition from banks is part of the reason. USD 16.39 billion of direct-lending loans were refinanced into the broadly syndicated market in Q3, against USD 2.60 billion moving the other way. For borrowers with a credible deal, a lender market with record capital and fewer opportunities means more room to negotiate on spread, debt quantum and terms.
2. Bank of America Fined USD 1.2 Billion Over Money Laundering and Sanctions Failures
The US Treasury announced on 13 October that FinCEN assessed a USD 1.2 billion penalty against Bank of America, of which USD 750 million goes to the OCC, the largest fine that agency has imposed. OFAC separately reached an USD 11.6 million settlement over apparent violations of several sanctions programs, including Iran and Russia, the Boston Globe reported.
The bank admitted willfully violating the Bank Secrecy Act, with the case tied to failures to address money laundering networks and illicit finance. Coming days after the USD 350 million American Express penalty, it confirms that US regulators are pressing large banks hard on financial crime controls. Expect compliance teams to ask more questions on every cross-border payment and trade transaction.
3. energyRe Closes USD 815 Million for 360 MW of South Carolina Solar
energyRe closed a USD 815 million financing for five utility-scale solar projects in South Carolina totalling about 360 MW, each backed by a 25-year power purchase agreement, PV Tech reported on 13 October. Bank of America, CIBC and Santander supported the deal, with Bank of America as documentation agent and Santander as financial advisor, alongside tax equity partners. Long-dated PPAs remain the anchor that lets a portfolio of mid-sized projects raise debt at scale.
4. IndiGo Signs the First Credendo-Insured Aircraft Financing
IndiGo signed a USD 328 million financing with Citi for six Airbus A321s and two A320s, insured by Belgium's export credit agency Credendo, DD India reported on 13 October. Citi acted as sole mandated arranger, ECA coordinator and sole lender. The deal is described as Credendo's first aviation financing and the first ECA-backed aircraft financing structured through India's GIFT IFSC. It is a reminder that ECA cover is widening beyond the traditional agencies, giving borrowers more routes to long-tenor debt.
5. Apollo Moves Toward Asset-Level Daily Pricing in Private Credit
Apollo is extending daily pricing across its USD 850 billion credit business, including direct lending and asset-backed finance, with asset-level pricing for eligible funds expected from 30 October 2026. Apollo describes the figures as estimated fair values from its internal methodology, not market-clearing prices. As valuation transparency rises, borrowers should expect lenders to watch covenant performance and marks more closely through the life of a loan.
What it means for borrowers
Negotiate with private lenders. Record fundraising and falling deployment give credible borrowers bargaining power on pricing and terms.
Expect tougher compliance. Two major US penalties in a week mean longer onboarding and more questions on payments and counterparties.
Contracts still drive project debt. Long-term PPAs and ECA cover continue to support large, long-tenor financings.
Transparency is rising. Daily pricing means lenders will track credit performance more closely after closing.
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Request a Free EstimateThis brief is for general information only, compiled from the public sources linked above as of 16 October 2026, and does not constitute legal, tax or investment advice. Financely has no involvement in the transactions described. Financely is an advisory and arranging firm, not a bank or direct lender, and does not itself commit lender capital. Financing remains subject to underwriting, KYC, AML, sanctions screening, definitive documentation and final credit approval.