Book contents
- Frontmatter
- Contents
- Preface to the Third Edition
- Preface to the Second Edition
- Preface to the First Edition
- PART ONE AN INTRODUCTION TO PROJECT FINANCE
- PART TWO RISK IDENTIFICATION, ALLOCATION, AND MITIGATION
- PART THREE PROJECT FINANCE STRUCTURES
- CHAPTER FIVE PROJECT FINANCE PARTICIPANTS AND THEIR ROLES
- CHAPTER SIX PROJECT FINANCE STRUCTURES
- CHAPTER SEVEN SELECTING THE PROJECT FINANCE OWNERSHIP STRUCTURE
- PART FOUR TECHNICAL, POLITICAL, AND ECONOMIC FEASIBILITY
- PART FIVE PROJECT FINANCE DOCUMENTATION
- PART SIX CREDIT ENHANCEMENT
- PART SEVEN DEBT AND EQUITY FINANCING
- PART EIGHT COLLATERAL
- PART NINE PROJECT SPONSOR AND INVESTOR AGREEMENTS
- PART TEN SPECIAL TOPICS IN PROJECT FINANCE
- Appendix A A Checklist of Due Diligence Considerations for a Project Financing
- Appendix B UNCITRAL Legislative Guide on Privately Financed Infrastructure Projects
- Project Finance Terms, Abbreviations, and Acronyms
- Select Bibliography
- Index
CHAPTER SIX - PROJECT FINANCE STRUCTURES
from PART THREE - PROJECT FINANCE STRUCTURES
Published online by Cambridge University Press: 05 June 2012
- Frontmatter
- Contents
- Preface to the Third Edition
- Preface to the Second Edition
- Preface to the First Edition
- PART ONE AN INTRODUCTION TO PROJECT FINANCE
- PART TWO RISK IDENTIFICATION, ALLOCATION, AND MITIGATION
- PART THREE PROJECT FINANCE STRUCTURES
- CHAPTER FIVE PROJECT FINANCE PARTICIPANTS AND THEIR ROLES
- CHAPTER SIX PROJECT FINANCE STRUCTURES
- CHAPTER SEVEN SELECTING THE PROJECT FINANCE OWNERSHIP STRUCTURE
- PART FOUR TECHNICAL, POLITICAL, AND ECONOMIC FEASIBILITY
- PART FIVE PROJECT FINANCE DOCUMENTATION
- PART SIX CREDIT ENHANCEMENT
- PART SEVEN DEBT AND EQUITY FINANCING
- PART EIGHT COLLATERAL
- PART NINE PROJECT SPONSOR AND INVESTOR AGREEMENTS
- PART TEN SPECIAL TOPICS IN PROJECT FINANCE
- Appendix A A Checklist of Due Diligence Considerations for a Project Financing
- Appendix B UNCITRAL Legislative Guide on Privately Financed Infrastructure Projects
- Project Finance Terms, Abbreviations, and Acronyms
- Select Bibliography
- Index
Summary
GENERALLY
Project finance structures are virtually unlimited by the creativity and flexibility of bankers and lawyers. Largely, the structures are influenced by the risk appetites of the lenders and investors involved in the financing and by the economic condition of the host country.
In general, these structures are based on one of three macro varieties: nonrecourse financing, limited recourse financing, and project output interest financing. Nonrecourse and limited recourse financing structures provide for debt repayment from the cash flows of the project. Output interest financing structures are centered on the purchase of an interest in the project output, which purchase price is used, in part, to finance the facility.
Within these three broad categories are countless other structures, on a micro level. The most frequently used of these, loan financing, export credit financing, lease financing, and bond financing are discussed in this chapter.
COMMERCIAL LOAN FINANCING
The general structure of a loan financing in the project finance context is not unlike the structure used in other loan transactions. In the typical project finance transaction, funds are lent to the project company for the construction and operation phases of a project.
- Type
- Chapter
- Information
- The Law and Business of International Project FinanceA Resource for Governments, Sponsors, Lawyers, and Project Participants, pp. 78 - 82Publisher: Cambridge University PressPrint publication year: 2007