Difference between revisions of "Project Finance"

From Design Computation
Jump to: navigation, search
(Identification and allocation of risks)
Line 36: Line 36:
 
==Summary of key lenders’ concerns==
 
==Summary of key lenders’ concerns==
  
=Section 3 Project Financing Documentation=
+
=Project Financing Documentation=
 
==Role of documentation==
 
==Role of documentation==
 
==Shareholder/sponsor documentation==
 
==Shareholder/sponsor documentation==
Line 44: Line 44:
 
==Lender requirements for project documents==
 
==Lender requirements for project documents==
  
=Section 4 Project Structures=
+
=Project Structures=
 
==Approach to financing==
 
==Approach to financing==
 
==Bonds==
 
==Bonds==
Line 51: Line 51:
 
==Borrowing Base model==
 
==Borrowing Base model==
 
==“Build Operate Transfer” “BOT” model==
 
==“Build Operate Transfer” “BOT” model==
 
 
==Forward Purchase model==
 
==Forward Purchase model==
  
=Section 5 Sharing Of Risks=
+
=Sharing Of Risks=
 
==Identification and allocation of risks==
 
==Identification and allocation of risks==
 
==Ground rules==
 
==Ground rules==
 
 
==Categories of project risks==
 
==Categories of project risks==
  
=Section 6 Security For Projects=
+
=Security For Projects=
 
==Approach of lenders==
 
==Approach of lenders==
 
==Reasons for taking security==
 
==Reasons for taking security==
Line 74: Line 72:
 
==Problem areas==
 
==Problem areas==
  
=Section 7 Insurance Issues=
+
=Insurance Issues=
 
==Role of project insurances==
 
==Role of project insurances==
 
==Who insures?==
 
==Who insures?==
Line 83: Line 81:
 
==Reinsurance==
 
==Reinsurance==
  
=Section 8 The Project Loan Agreement=
+
=The Project Loan Agreement=
 
==Warranties, covenants and events of default==
 
==Warranties, covenants and events of default==
 
==Project bank accounts==
 
==Project bank accounts==
Line 92: Line 90:
 
==Completion issues==
 
==Completion issues==
  
=Section 9 Export Credit Agencies And Multilateral Agencies=
+
=Export Credit Agencies And Multilateral Agencies=
 
==The role of export credit agencies in project finance==
 
==The role of export credit agencies in project finance==
 
==An introduction to the G7 ECAs==
 
==An introduction to the G7 ECAs==

Revision as of 19:41, 10 September 2018


Contents

Introduction

Origins of project financing

Definition of project finance

Extent of recourse

Why choose project finance?

Structuring the project vehicle

Key sponsor issues

Project implementation and management

Parties To A Project Financing

Parties and their roles

Project company/borrower

Sponsors/shareholders

Third-party equity

Banks

Facility agent

Technical bank

Insurance bank/account bank

Multilateral and export credit agencies

Construction company

Operator

Experts

Host government

Suppliers

Purchasers

Insurers

Other parties

Summary of key lenders’ concerns

Project Financing Documentation

Role of documentation

Shareholder/sponsor documentation

Loan and security documentation

Project documents

Force majeure

Lender requirements for project documents

Project Structures

Approach to financing

Bonds

Leasing

North Sea model

Borrowing Base model

“Build Operate Transfer” “BOT” model

Forward Purchase model

Sharing Of Risks

Identification and allocation of risks

Ground rules

Categories of project risks

Security For Projects

Approach of lenders

Reasons for taking security

Universal security interests

Scope of security

Third party security

Direct agreements

Host government support

Comfort letters

Governing law

Security trusts

Formalities

Problem areas

Insurance Issues

Role of project insurances

Who insures?

Scope of cover

Problem areas

Protection for lenders

Broker’s undertaking

Reinsurance

The Project Loan Agreement

Warranties, covenants and events of default

Project bank accounts

Appointment of experts

Information and access

Cover ratios

Governing law and jurisdiction

Completion issues

Export Credit Agencies And Multilateral Agencies

The role of export credit agencies in project finance

An introduction to the G7 ECAs

The advantages of involving ECAs in a project

The OECD consensus

Departing from consensus

Categories of ECA support in the context of a project financing

The changing role of the ECA in project finance

ECAs and credit documentation