Project Finance can be characterized in a variety of ways and there is no universally adopted definition but as a financing technique, involves “the raising of finance on a ‘Limited Recourse’ basis, for the purposes of developing a large capital-intensive infrastructure project, where the borrower is a special purpose vehicle and repayment of the financing by the borrower will be dependent on the internally generated cash-flows of the project”. Due to the complexity of its structuring, this type of financing is generally more expensive in terms of higher margins, lending fees, monitoring expenses, and professional fees. The terms of lending are based on the projected cash flows but can be as long as 15+ years.
At Phillips Consulting, we will advise you on the most competitive and reliable project funders, either locally or offshore. Some of the funding techniques include:
- Equity Financing (Private or Public)
- Mezzanine/Subordinated Debt
- Bank Term Loans - Senior Debt
- Working Capital Credit Lines