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
- PART FOUR TECHNICAL, POLITICAL, AND ECONOMIC FEASIBILITY
- PART FIVE PROJECT FINANCE DOCUMENTATION
- PART SIX CREDIT ENHANCEMENT
- PART SEVEN DEBT AND EQUITY FINANCING
- CHAPTER TWENTY-ONE FINANCING SOURCES FOR THE PROJECT
- CHAPTER TWENTY-TWO THE OFFERING MEMORANDUM
- CHAPTER TWENTY-THREE PROJECT FINANCE DEBT COMMITMENT LETTERS
- CHAPTER TWENTY-FOUR CREDIT AND RELATED DOCUMENTATION FOR PROJECT FINANCE TRANSACTIONS
- CHAPTER TWENTY-FIVE EXPORT CREDITS DOCUMENTATION FOR PROJECT FINANCE TRANSACTIONS
- 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 TWENTY-FIVE - EXPORT CREDITS DOCUMENTATION FOR PROJECT FINANCE TRANSACTIONS
from PART SEVEN - DEBT AND EQUITY FINANCING
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
- PART FOUR TECHNICAL, POLITICAL, AND ECONOMIC FEASIBILITY
- PART FIVE PROJECT FINANCE DOCUMENTATION
- PART SIX CREDIT ENHANCEMENT
- PART SEVEN DEBT AND EQUITY FINANCING
- CHAPTER TWENTY-ONE FINANCING SOURCES FOR THE PROJECT
- CHAPTER TWENTY-TWO THE OFFERING MEMORANDUM
- CHAPTER TWENTY-THREE PROJECT FINANCE DEBT COMMITMENT LETTERS
- CHAPTER TWENTY-FOUR CREDIT AND RELATED DOCUMENTATION FOR PROJECT FINANCE TRANSACTIONS
- CHAPTER TWENTY-FIVE EXPORT CREDITS DOCUMENTATION FOR PROJECT FINANCE TRANSACTIONS
- 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
THE EXPORT LENDER'S PERSPECTIVE
Generally
Commercial lenders and export-import financing agencies have a common perspective in project financings. Like commercial lenders, export-import financing agencies base credit appraisals on the projected revenues from the operation of the facility, rather than the general assets or the credit of the sponsor of the facility, and rely on the assets of the facility, including the revenue-producing contracts and cash flow, as collateral for the project debt. The credit appraisal of the export-import financing agency making a project finance loan is therefore based on the underlying cash flow from the revenue-producing contracts of the project, independent of the project sponsor's assets.
Unlike a commercial lender, however, the export-import financing agency is a political creature. It is formed to promote trade or other interests of an organizing country and is generally nationalistic in purpose and nationalistic and political in operation. Bureaucracy and budget constraints, like in any governmental agency, affect its efficiency and ability to respond to project financing needs. Funding for bilateral agencies generally comes from their organizing governments.
The OECD consensus
Concessional financing by the world's governments for exports and imports affects competition, manufacturing efficiency, and prices. In recognition of this, the member countries of the Organisation for Economic Co-operation and Development (OECD) signed the “Arrangement on Guidelines for Officially Supported Credits.” It is also called the OECD Consensus.
- Type
- Chapter
- Information
- The Law and Business of International Project FinanceA Resource for Governments, Sponsors, Lawyers, and Project Participants, pp. 357 - 360Publisher: Cambridge University PressPrint publication year: 2007