the Italian ECA. See §11.5.7
ISDA International Swap and Deriv-
atives Association, which produces
standard form documentation for in-
terest rate swaps. See §9.2.1
Islamic ﬁnancing Finance without
payment of interest. See §11.6.11;
ITN Invitation to Negotiate. See RFP.
ITT Invitation to Tender. See RFP.
JBIC Japan Bank for International
Co-operation, which provides ex-
port credits and untied ﬁnancing.
JEXIM Export–Import Bank of Ja-
pan, now superseded by JBIC.
KfW Kreditanstalt für Wiederauf-
bau, which provides CIRR funding
for German exports and untied ﬁ-
nancing. See §11.5.6
L/C Letters of credit, a form of pay-
ment guarantee issued by a bank.
LDs Liquidated damages, i.e., the
agreed level of loss when a party
does not perform under a contract.
See §6.1.7; §7.1.8
Lead Manager(s) Bank(s) arranging
and underwriting the debt. See
lease A form of debt in which the
equipment being ﬁnanced is owned
by the lessor. See §3.4; 13.13.4
lenders Banks or bond investors. See
Chapters 3 and 5
lenders’ advisers External advisers
employed by the lenders. See §5.4
Lenders’ Engineer An engineering
ﬁrm advising the lenders. See §5.4.2
lessee The obligor under a lease (i.e.,
the Project Company). See §3.4
lessor The provider of ﬁnance under
Glossary and Abbreviations 337
a lease (equivalent to a lender). See
leverage The debt:equity ratio. See
LIBOR London interbank offered
rate, one of the leading ﬂoating in-
terest rates. See §9.2
limited-recourse Finance with lim-
ited guarantees from the Sponsors.
LLCR Loan Life Cover Ratio, the
ratio of the NPV of operating cash
ﬂow during the remaining term of
the debt and the debt principal
amount. See §12.9.2
LNG Liqueﬁed natural gas.
lock-up ratio See dividend stop
LOI Letter of Intent, heads of terms
for a Project Agreement or other
MAC clause Material adverse
change clause(s) in the ﬁnancing
documentation that give the lenders
discretion to refuse to allow further
drawings or to require repayment of
the debt followings a material ad-
verse change in the project. See
macroeconomic risks Project ﬁ-
nance risks related to inﬂation, in-
terest rates, or currency exchange
rates. See Chapter 9; §12.3
maintenance bond See warranties.
Maintenance Reserve Account A
Reserve Account that builds up a
cash balance sufﬁcient to cover the
major maintenance of the project.
See §8.7.5; §13.5.2
Maître d’Oeuvre See Independent