Project Financing
-Introduction-Benefits & Disadvantages-Major Participants
- The mobilization of debt, equity, hedgesand a variety of limited guarantees througha newly organized company , partnersh...
Benefits & Disadvantages                            -Delays in financial closing-Minimizing the equity                    ...
Benefits & Disadvantages-Reducing taxes “1 entity    - Documentation isnot 2”                       lengthy and complex-Av...
Major ParticipantsSponsors   Project   Construction           Vehicle   Contractors    Lenders                            ...
Sponsor
Project Vehicle
ConstructionContractors
Lenders
Sukuk
InsuranceProviders
Other parties
Participants Found In Many But Not AllProject Finance DealsOff-taker
The entity that is single purchaser of all theproject output subject to a formal contractThe off-take agreement is designe...
Third-PartyOperator
Responsible for the O&M of the projectWhen a third party operator is not used in aproject, one of the sponsors may underta...
ResourceSupplier
Responsible for the delivery to the project ofnecessary fuel
Government
In industrialized countries the central government israrely involved in project finance
Thank you verymuch
Project Financing Introduction
Project Financing Introduction
Project Financing Introduction
Project Financing Introduction
Project Financing Introduction
Project Financing Introduction
Project Financing Introduction
Project Financing Introduction
Project Financing Introduction
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Project Financing Introduction

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Project Financing Introduction

  1. 1. Project Financing
  2. 2. -Introduction-Benefits & Disadvantages-Major Participants
  3. 3. - The mobilization of debt, equity, hedgesand a variety of limited guarantees througha newly organized company , partnershipor contractual JV.
  4. 4. Benefits & Disadvantages -Delays in financial closing-Minimizing the equity -Higher risk premium forcommitment to be associated loansdelivered to anyone -Lenders insist on havingparticular project greater oversight of the-Negotiating risk sharing project- Segregation project’s -Lenders view theliabilities from the insurance arrangementscorporate balance sheet as part of the risk-sharingfrom accounting “added cost on theperspective sponsor”
  5. 5. Benefits & Disadvantages-Reducing taxes “1 entity - Documentation isnot 2” lengthy and complex-Avoiding restrictivecovenants on the corporatebalance sheet arising fromproject’s debt financing-Achieving diversification
  6. 6. Major ParticipantsSponsors Project Construction Vehicle Contractors Lenders ThirdInsurance Other Off- PartyProviders Parties Takers Operator Resource Government Supplier
  7. 7. Sponsor
  8. 8. Project Vehicle
  9. 9. ConstructionContractors
  10. 10. Lenders
  11. 11. Sukuk
  12. 12. InsuranceProviders
  13. 13. Other parties
  14. 14. Participants Found In Many But Not AllProject Finance DealsOff-taker
  15. 15. The entity that is single purchaser of all theproject output subject to a formal contractThe off-take agreement is designed frequently to permitthe project vehicle to hedge against certain risks“inflation-foreign exchange etc.”
  16. 16. Third-PartyOperator
  17. 17. Responsible for the O&M of the projectWhen a third party operator is not used in aproject, one of the sponsors may undertake thisrole.
  18. 18. ResourceSupplier
  19. 19. Responsible for the delivery to the project ofnecessary fuel
  20. 20. Government
  21. 21. In industrialized countries the central government israrely involved in project finance
  22. 22. Thank you verymuch

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