Transcription of Security in Project Finance - ebrd.com
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1 Security in Project FinanceJan Hendrik R verSECURED LENDING IN COMMERCIAL transactions TRENDS AND PERSPECTIVES 2 Overview What is Project Finance ? Project Finance after the financial crisis Functions of Security in Project Finance What is Security in Project Finance ? Security structures in Project Finance How secure is Security in Project Finance ?3 What is Project Finance ? A general definitionProject financing is characterised by five criteria and thus clearly differentiated from traditional corporate lending:BorrowerLegally and economically independent Project companyService of Project loan (repayment and interest)from future cash flows of Project companyPurpose of financingFinancing of a clearly defined(green or brown field) projectLiability of sponsorsNo or only limited recourse to sponsors Security interests of Project company (limited) Security interests of sponsorsRisk structuring123454 What is Project Finance ? The PartiesSponsor 1 Sponsor 2 Project companyBank 1 Bank 2 Loan 1 Loan 2 Intercreditor agreement5 What is Project Finance ?
1 Security in Project Finance Jan‐Hendrik Röver SECURED LENDING IN COMMERCIAL TRANSACTIONS ‐TRENDS AND PERSPECTIVES ‐
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TRANSACTIONS, Financial Transactions and Remittance Advice, Payments and Transactions, World Bank, SENIOR FACILITIES TERM SHEET] CONFIDENTIAL, SENIOR FACILITIES TERM SHEET] CONFIDENTIAL EXHIBIT, Secured, SAMPLE TERM SHEET] CONFIDENTIAL EXHIBIT A, Frequently Asked Questions CFPB’s, Owner Financed Residential Real Estate