Difference between revisions of "Project Finance Structure"

From Open Risk Manual
(Created page with "== Definition == '''Project Finance Structure''' is the legal and financial set of contracts and arrangements that is involved in a Project Finance financial arrangement...")
 
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=== Core Stakeholders ===
 
=== Core Stakeholders ===
* Sponsor(s) (Equity Investors)
+
* 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
+
* 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 / service that the project produces / delivers)
 
* Off-taker(s) - the party who is buying the product / service that the project produces / delivers)
 +
* Suppliers of project inputs (raw materials)
 
* Workers
 
* Workers
 
* Affected Communities
 
* Affected Communities
  
 
=== Other Involved Parties ===
 
=== Other Involved Parties ===
* Contractor and Equipment Supplier
+
* Contractor and Equipment Supplier for [[Project]] development
 
* Operator
 
* Operator
 
* Financial Advisors
 
* Financial Advisors
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* Multilateral Agencies
 
* Multilateral Agencies
 
* [[Export Credit Agency]]
 
* [[Export Credit Agency]]
* Insurance Providers
+
* Insurance Providers covering various insurable risks
* Hedge providers
+
* Hedge Providers for hedging financial risks such as interest rates and/or foreign exchange risks
  
  
 
[[Category:Project Finance]]
 
[[Category:Project Finance]]

Revision as of 16:07, 16 March 2021

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 / service that the project produces / 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