Project Finance Structure

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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