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Project financiing.pptx

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Jayraj Javheri

Project financing is a long-term, limited or zero recourse financing solution for a borrower based on the rights, assets, and interests related to a specific project. It involves capital intensive financing, risk allocation among multiple participants, and loan repayment from project cash flow. Project financing goes through several stages including feasibility analysis, arranging financing through loans or equity, documentation and verification, and repayment over the life of the successful project. Project sponsors are typically existing companies, developers or government agencies that originate the business idea and provide relevant expertise to implement and operate the project.

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PROJECT FINANCING
PROJECT FINANCING What is Project Financing..? Project Financing is a long-term, zero or limited recourse financing solution that is available to a borrower against the rights, assets, and interests related to the concerned project.
Project Financing Key features of Project Financing.. Capital Intensive financing scheme. Risk Allocation. Multiple Participant applicable. Asset ownership decided at the completion of the project. Zero or limited recourse Financing solutions Loan Repayment with project cash flow Better tax treatment
PROJECT FINANCING Various stages of Project Financing¡­ Pre-Financial Stage Identification of the Project Plan Recognizing & Minimizing the Risk Checking Project Feasibility. Financing stage Arrangement of Finance Loan or Equity Negotiation Document & Verification Payment. Post-Financing Stage. Timely Project Financing Project closure Loan repayment
Who are Sponsors in Project Financing..? The whole idea of the project or business idea must come from somewhere or some person. It usually comes from a project sponsor who may be an existing company; a developer; or a government institution or agency. There is no limit to the number of sponsors. When the sponsor is a company, it usually has some relevant expertise and experience in the implementation and operation of the project that is being undertaken. For example, the sponsor of a power project is usually an existing independent power producer (IPP) or power utility. Lenders.. Commercial Banks- Export Credit Agencies Multilateral agencies like- IFC, MIGA & ADB
Project financiing.pptx

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Project financiing.pptx

  • 2. PROJECT FINANCING What is Project Financing..? Project Financing is a long-term, zero or limited recourse financing solution that is available to a borrower against the rights, assets, and interests related to the concerned project.
  • 3. Project Financing Key features of Project Financing.. Capital Intensive financing scheme. Risk Allocation. Multiple Participant applicable. Asset ownership decided at the completion of the project. Zero or limited recourse Financing solutions Loan Repayment with project cash flow Better tax treatment
  • 4. PROJECT FINANCING Various stages of Project Financing¡­ Pre-Financial Stage Identification of the Project Plan Recognizing & Minimizing the Risk Checking Project Feasibility. Financing stage Arrangement of Finance Loan or Equity Negotiation Document & Verification Payment. Post-Financing Stage. Timely Project Financing Project closure Loan repayment
  • 5. Who are Sponsors in Project Financing..? The whole idea of the project or business idea must come from somewhere or some person. It usually comes from a project sponsor who may be an existing company; a developer; or a government institution or agency. There is no limit to the number of sponsors. When the sponsor is a company, it usually has some relevant expertise and experience in the implementation and operation of the project that is being undertaken. For example, the sponsor of a power project is usually an existing independent power producer (IPP) or power utility. Lenders.. Commercial Banks- Export Credit Agencies Multilateral agencies like- IFC, MIGA & ADB