Project Financing is the debt and/or equity funding necessary for a variety of projects (including Real Estate Developments, Industrial or Manufacturing Project, Telecommunications, Waste-to-Energy, Alternative Fuels, etc), and generally encompasses the use of multiple investors or a syndicate, whereby the project assets are secured as collateral.
In general, special purpose vehicles are employed for each individual project though in many cases, an existing company is utilized. Also, a Capital Investment by the promoters requiring financing of their project is usually compulsory and thereby putting forth the premise that the project in financially sound and viable.
Risk identification is an important aspect in project financing. Any given project may be subject to one or all of the technical, environmental, economic and political risks, especially in developing countries and/or emerging markets.
The process for identifying the associated risks in Project Financing includes a Due Diligence conducted along with use of third party independent firms to determine if the project is feasible and considered risk prior to any disbursement of funds.
The further parameters defining the intricacies of a Due Diligence as conducted by Capital Corp Merchant Banking, can be viewed be selecting from the corresponding directory to the left of this screen.