Difference between revisions of "Project Finance"
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==Project implementation and management== | ==Project implementation and management== | ||
| − | Parties To A Project Financing | + | =Parties To A Project Financing= |
2.1 Parties and their roles 9 | 2.1 Parties and their roles 9 | ||
2.2 Project company/borrower 9 | 2.2 Project company/borrower 9 | ||
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2.17 Other parties 15 | 2.17 Other parties 15 | ||
2.18 Summary of key lenders’ concerns 15 | 2.18 Summary of key lenders’ concerns 15 | ||
| − | Section 3 Project Financing Documentation | + | =Section 3 Project Financing Documentation= |
3.1 Role of documentation 16 | 3.1 Role of documentation 16 | ||
3.2 Shareholder/sponsor documentation 16 | 3.2 Shareholder/sponsor documentation 16 | ||
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3.5 Force majeure 23 | 3.5 Force majeure 23 | ||
3.6 Lender requirements for project documents 25 | 3.6 Lender requirements for project documents 25 | ||
| − | Section 4 Project Structures | + | =Section 4 Project Structures= |
4.1 Approach to financing 26 | 4.1 Approach to financing 26 | ||
4.2 Bonds 26 | 4.2 Bonds 26 | ||
| Line 48: | Line 48: | ||
4.6 “Build Operate Transfer” “BOT” model | 4.6 “Build Operate Transfer” “BOT” model | ||
4.7 Forward Purchase model 33 | 4.7 Forward Purchase model 33 | ||
| − | Section 5 Sharing Of Risks | + | =Section 5 Sharing Of Risks= |
5.1 Identification and allocation of risks 35 | 5.1 Identification and allocation of risks 35 | ||
5.2 Ground rules 35 | 5.2 Ground rules 35 | ||
5.3 Categories of project risks 36 | 5.3 Categories of project risks 36 | ||
| − | Section 6 Security For Projects | + | =Section 6 Security For Projects= |
6.1 Approach of lenders 43 | 6.1 Approach of lenders 43 | ||
6.2 Reasons for taking security 43 | 6.2 Reasons for taking security 43 | ||
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6.11 Formalities 54 | 6.11 Formalities 54 | ||
6.12 Problem areas 54 | 6.12 Problem areas 54 | ||
| − | Section 7 Insurance Issues | + | =Section 7 Insurance Issues= |
7.1 Role of project insurances 55 | 7.1 Role of project insurances 55 | ||
7.2 Who insures? 55 | 7.2 Who insures? 55 | ||
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7.6 Broker’s undertaking 57 | 7.6 Broker’s undertaking 57 | ||
7.7 Reinsurance 58 | 7.7 Reinsurance 58 | ||
| − | Section 8 The Project Loan Agreement | + | =Section 8 The Project Loan Agreement= |
8.1 Warranties, covenants and events of default 59 | 8.1 Warranties, covenants and events of default 59 | ||
8.2 Project bank accounts 61 | 8.2 Project bank accounts 61 | ||
| Line 81: | Line 81: | ||
8.6 Governing law and jurisdiction 65 | 8.6 Governing law and jurisdiction 65 | ||
8.7 Completion issues 66 | 8.7 Completion issues 66 | ||
| − | Section 9 Export Credit Agencies And Multilateral Agencies | + | =Section 9 Export Credit Agencies And Multilateral Agencies= |
9.1 The role of export credit agencies in project finance 67 | 9.1 The role of export credit agencies in project finance 67 | ||
9.2 An introduction to the G7 ECAs 67 | 9.2 An introduction to the G7 ECAs 67 | ||
Revision as of 19:31, 10 September 2018
Contents
- 1 Introduction
- 2 Parties To A Project Financing
- 3 Section 3 Project Financing Documentation
- 4 Section 4 Project Structures
- 5 Section 5 Sharing Of Risks
- 6 Section 6 Security For Projects
- 7 Section 7 Insurance Issues
- 8 Section 8 The Project Loan Agreement
- 9 Section 9 Export Credit Agencies And Multilateral Agencies
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
2.1 Parties and their roles 9 2.2 Project company/borrower 9 2.3 Sponsors/shareholders 10 2.4 Third-party equity 11 2.5 Banks 11 2.6 Facility agent 12 2.7 Technical bank 12 2.8 Insurance bank/account bank 12 2.9 Multilateral and export credit agencies 12 2.10 Construction company 13 2.11 Operator 13 2.12 Experts 13 2.13 Host government 14 2.14 Suppliers 14 2.15 Purchasers 14 2.16 Insurers 14 2.17 Other parties 15 2.18 Summary of key lenders’ concerns 15
Section 3 Project Financing Documentation
3.1 Role of documentation 16 3.2 Shareholder/sponsor documentation 16 3.3 Loan and security documentation 18 3.4 Project documents 19 3.5 Force majeure 23 3.6 Lender requirements for project documents 25
Section 4 Project Structures
4.1 Approach to financing 26 4.2 Bonds 26 4.3 Leasing 28 4.4 North Sea model 29 4.5 Borrowing Base model 29 4.6 “Build Operate Transfer” “BOT” model 4.7 Forward Purchase model 33
Section 5 Sharing Of Risks
5.1 Identification and allocation of risks 35 5.2 Ground rules 35 5.3 Categories of project risks 36
Section 6 Security For Projects
6.1 Approach of lenders 43 6.2 Reasons for taking security 43 6.3 Universal security interests 44 6.4 Scope of security 45 6.5 Third party security 48 6.6 Direct agreements 50 6.7 Host government support 52 6.8 Comfort letters 52 6.9 Governing law 53 6.10 Security trusts 54 6.11 Formalities 54 6.12 Problem areas 54
Section 7 Insurance Issues
7.1 Role of project insurances 55 7.2 Who insures? 55 7.3 Scope of cover 55 7.4 Problem areas 55 7.5 Protection for lenders 56 7.6 Broker’s undertaking 57 7.7 Reinsurance 58
Section 8 The Project Loan Agreement
8.1 Warranties, covenants and events of default 59 8.2 Project bank accounts 61 8.3 Appointment of experts 61 8.4 Information and access 62 8.5 Cover ratios 63 8.6 Governing law and jurisdiction 65 8.7 Completion issues 66
Section 9 Export Credit Agencies And Multilateral Agencies
9.1 The role of export credit agencies in project finance 67 9.2 An introduction to the G7 ECAs 67 9.3 The advantages of involving ECAs in a project 67 9.4 The OECD consensus 68 95 Departing from consensus 69 9.6 Categories of ECA support in the context of a project financing 69 97 The changing role of the ECA in project finance 73 9.8 ECAs and credit documentation 74
