Project Financing

Project financing is a method of funding in which the financier looks primarily to the revenue streams generated by a single project, both as the source of repayment and as security for the exposure on the funding. In contrast, traditional method of financing is where the borrower promises to transfer to the lender a physical or economic entity as a collateral in the case of default. In practice, most projects are financed by a combination of both traditional methods as well as by guarantee-backed loans.

Though project financing refers to raising capital by any means to pay for any project, the term refers to a narrow but increasingly more prevalent method of financing capital- and risk-intensive projects across a broad array of industries. Project Financing transactions play an important role in financing development throughout the world. This type of financing is usually for large, complex and expensive installations that might include, for example, power plants, chemical processing plants, mines, transportation infrastructure, environment, and telecommunications infrastructure. We work closely with governments, international network of financiers (including commercial banks, direct equity investment funds, multilateral agencies, export credit agencies, and global capital markets), project sponsors, EPC contractors, suppliers, customers and global law firms to provide customized financing solutions for various projects.