Principles of Project Finance

could find it is spending an excessive amount of time communicating with indi-

vidual banks. The agent bank performs the various tasks:

• Collects the funds from the syndicate when drawings are made and passes

these on to the Project Company

• Holds the project security on behalf of the lenders (This function may be car-

ried out by a separate security trustee, acting on the instructions of the agent

bank.)

• Calculates interest payments and principal repayments

• Receives payments from the Project Company and passes these on to the in-

dividual syndicate banks

• Gathers information about the progress of the project, in liaison with the

lenders’ advisers, and distributes this to the syndicate at regular intervals

• Monitors the Project Company’s compliance ...