Project Finance Structure
From Open Risk Manual
Definition
Project Finance Structure is the legal and financial set of contracts and arrangements that is involved in a Project Finance financial arrangement
Involved Parties
Core Stakeholders
- A principal Sponsor(s) (and possible additional Equity Investors). Sponsors may be government and public sector entities or corporate entities
- Lenders (including senior lenders and/or mezzanine), usually in the form of a syndicate (Both short and long term Loans and Bonds)
- Off-taker(s) - the party who is buying the product or service that the project produces or delivers
- Suppliers of project inputs (raw materials)
- Workers
- Affected Communities
Other Involved Parties
- Contractor and Equipment Supplier for Project development
- Operator
- Financial Advisors
- Technical Advisors
- Legal Advisors
- Regulatory Agencies
- Multilateral Agencies
- Export Credit Agency
- Insurance Providers covering various insurable risks
- Hedge Providers for hedging financial risks such as interest rates and/or foreign exchange risks
