Project Finance Structure

From Open Risk Manual


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