“Rollin’ on the River” – The Project Finance Award

Of the new categories we added this year, this one, in particular, was long overdue. Project finance transactions are the outliers in terms of today’s credit philosophy that focuses mainly on the cash flows and balance sheets of the borrowers. In contrast, project financings are generally structured around a singular contractual cash flow obligation from a third party and the creditworthiness and balance sheet of that cash flow source. In these transactions, the borrower is often a single purpose company and there may or may not be credit support in the form of guarantees or additional security from the project sponsors. Following the theme, loans too are generally non-recourse. Although collateral is a secondary source of repayment in both types of transactions, its role is more significant in a project

This is only an excerpt of “Rollin’ on the River” – The Project Finance Award

Content is restricted to subscribers. To continue reading please Log-In or view our subscription options.