Global Trade and Financing

Available to

U.S. entities and Non U.S. entities domicile outside or inside U.S.

Exports Supported

Capital equipment and related services for project whose repayment depends on project cash flows, usually as defined by contractual relationship.

Best used by

• Major U.S. suppliers
• Project sponsors without access to capital markets or government guarantee
• Entities out of U.S.

Coverage and Terms

• 15% cash payment by foreign buyer
• Consideration of following on case-by-case basis
  • Financing of interest during construction
  • Local cost financing up to 15% to 30% of U.S. contract amount
  • Maximum repayment terms within OECD guidelines
• Political and comprehensive coverage options available pre- and post- completion.
• Grace period available.

A Project finance is a limited or nonrecourse financing arranged in which the financial institution bases its financing criteria on the anticipated revenues from the operation of the project.

A project can be for a new development or a expansion of existing project.

Alternative to Finance a project:

Corporate Balance Sheet
Simple secure financing
Structure Finance with a Guarantor
Limited/Non Recourse Project Financing

Project Financing Structure:

-Project Company
                New
                Existing
                Consortium
-Financing parties
                Commercial
                ECA’s
                MLA’s
                Private
-Security, Collateral
                Type
                Application of Revenues
                Ratios and parameters
                Accounts-Offshore and Onshore
                Control over Project
                Remedies
-Direct agreements
                Technical-Reliability
                Commercial-Equity
                Legal-Government approval
                Completion Report
-Sponsors/Partners
                Capital – Equity
                Experience
                Relations with other parties
                Risk
                                Schedule of completion
                                Management
                                Operation and Maintenance
                                Commitment
                Mitigation
                                Financial Strength
                                Technical and operation experience
                                Insurance
                                Warranties
                                Completion guarantees
                Agreements
-Host Government
                Legal and Regulatory Role
                Support
                License / Concession
                Risk and Mitigation
-Construction Contractors
                Role of Contractor
                Role of Sub contractor
                Other options
-Production and Operation of the Project
                Purchase Agreement
                Supply
                Agreements
                Operation in Practice
                Demand
                Credit
                Sustainability