Project Finance refers to the financing of long-term infrastructure and industrial projects, as well as public services, using a non-recourse or limited recourse financial structure. The capital for these ventures typically consists of equity and debt, which are repaid through the cash flow generated by the projects.
In Project Finance, the borrowing structure relies primarily on the project’s generated cash flow for repayment, with project assets, rights, and other interests serving as secondary collateral. This approach is particularly attractive to the private sector because it allows companies to invest in large projects without impacting their balance sheets.
Project loans are designed for corporate borrowers seeking funding for capital expenditures, including expanding production facilities and acquiring fixed assets such as land, buildings, machinery, and equipment.
Upon receipt of the Project Feasibility Study Report (FSR) and Detailed Project Report (DPR)/Business Plan, the client submits these documents for our finance team’s review. If we find the details satisfactory, we will issue our Terms and Conditions for Project Finance Services.
Once the client approves our Terms and Conditions, they must sign and return them to us.
Upon acceptance of the Term Sheet by the client, financiers/investors will conduct due diligence at their own expense. Depending on the scale of financing required, multiple financiers/investors may be involved, potentially necessitating a loan/equity syndication process, with associated fees for the client.
Successful completion of due diligence allows the client to proceed with signing a Joint Venture (JV) Agreement with investors or Loan Agreement(s) with individual lender(s) and/or investor(s).