November 2013
Beginner
560 pages
17h 26m
English
This chapter examines some of the main financial-structuring issues likely to arise once the commercial fundamentals and risks of the project have been reviewed as set out in previous chapters. Financial structuring would normally proceed in parallel with the financial-modeling process set out in Chapter 13. Since the Sponsors are the drivers for any project, the investors’ point of view is discussed first (§12.2). Then the main elements likely to be dealt with in the negotiations between the Project Company and its lenders on the overall financing structure and terms are reviewed. These usually include Debt-Cover Ratios (§12.3), debt: equity ratio (§12.4), debt-service profile (§12.5), interest rate and fees ...
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