Project debt, matched to the lender whose mandate fits the project.
Project financing lends against a defined project, such as a power plant, a transmission or digital-infrastructure asset, or an industrial facility, and is repaid from that project's own cash flows. The borrower is usually a special-purpose company, and recourse to the sponsor is limited or none. Financings include construction loans and term loans for operating assets. Facilities we work on start at $5 million and are typically $10 million to $250 million.
How it works in a paragraph
Lenders size the debt to the project's contracted or reliably forecast cash flow, test it against a coverage ratio, and require the sponsor to put in equity. Construction risk is covered by contracts, budgets, contingencies and, usually, an independent engineer's review. Pricing, tenor, gearing and covenants vary by lender and project. Nothing here is an offered term.
The other side of the market
Borrowers see lenders by type. Lenders see borrowers screened against their written criteria before introduction. Each side has its own page.