Project Financinig - MBA Subject:- Advanced Financial Management

1. PROJECT FINANCING

2. PROJECT
FINANCING
What is Project Financing..?
Project Financing is a long-term, zero or limited recourse
financing solution that is available to a borrower against the
rights, assets, and interests related to the concerned project.

3. Project Financing
Key features of Project Financing..
Capital Intensive financing scheme.
Risk Allocation.
Multiple Participant applicable.
Asset ownership decided at the completion of the project.
Zero or limited recourse Financing solutions
Loan Repayment with project cash flow
Better tax treatment

4. PROJECT
FINANCING
Various stages of Project Financing…
Pre-Financial Stage
Identification of the Project Plan
Recognizing & Minimizing the Risk
Checking Project Feasibility.
Financing stage
Arrangement of Finance
Loan or Equity Negotiation
Document & Verification
Payment.
Post-Financing Stage.
Timely Project Financing
Project closure
Loan repayment

5. Who are Sponsors in Project Financing..?
The whole idea of the project or business idea must come from
somewhere or some person. It usually comes from a project
sponsor who may be an existing company; a developer; or a
government institution or agency. There is no limit to the
number of sponsors.
When the sponsor is a company, it usually has some relevant
expertise and experience in the implementation and operation of
the project that is being undertaken. For example, the sponsor of
a power project is usually an existing independent power
producer (IPP) or power utility.
Lenders..
Commercial Banks-
Export Credit Agencies
Multilateral agencies like- IFC, MIGA & ADB