Yank the bank provisions explained
Yank the bank provisions let a borrower replace a lender that claims increased costs or withholds consent by transferring the commitment.
Project finance articles
81 articles
Articles on project finance for bank credit desks: structures, cover ratios, security packages and ECA-backed tranches, each cited to the official record.
Distribution lock-up in project finance
A distribution lock-up stops equity payments when coverage tests, reserves or default conditions in the finance documents are not met.
Financial close project finance explained
Financial close project finance is the point when financing documents are effective and conditions precedent to first drawdown are satisfied.
Independent engineer project finance role
Independent engineer project finance appointments deliver lender-side technical due diligence, construction monitoring and completion certification.
Snooze you lose voting in syndicated loans
A snooze you lose clause disregards non-responding lenders when testing majority consent for amendments and waivers in syndicated facilities.
Transfer certificate syndicated loan mechanics
A transfer certificate syndicated loan mechanic novates rights and obligations so a new lender becomes lender of record under LMA style facilities.
Cash sweep project finance explained
A cash sweep project finance clause applies defined excess cash to mandatory prepayment of senior debt after the waterfall's prior steps.
Legal entity identifier framework for banks
The legal entity identifier banks use is a 20 character ISO 17442 code uniquely identifying legal entities in the Global LEI System.
OECD common approaches explained
OECD Common Approaches set shared environmental and social due diligence procedures for officially supported export credits among OECD Adherents.
Sustainability due diligence export finance
Sustainability due diligence export finance covers ECA Common Approaches reviews and corporate regimes such as the EU CSDDD.
Transition finance framework pillars explained
A transition finance framework sets voluntary pillars for identifying, disclosing and financing Paris-aligned whole-of-economy decarbonisation.
IFC a loan b loan structures explained
IFC A Loan B Loan structures keep IFC as lender of record while selling funded participations in the B Loan to eligible private lenders.
Sub participation loan structures explained
A sub-participation loan passes a loan's economic risk and return to a participant while the grantor stays lender of record under the facility agreement.
Sustainability linked loan structures explained
A sustainability linked loan ties loan economics to KPIs and sustainability performance targets under the LMA APLMA LSTA principles.
Take or pay contract structures explained
A take or pay contract obliges the buyer to pay for a minimum quantity of output whether or not that quantity is taken.
Tolling agreement project finance explained
Tolling agreement project finance structures allocate feedstock and offtake so the project company earns capacity-linked payments for debt service.
Reserve based lending explained
Reserve based lending is a revolving facility for oil and gas producers limited by a borrowing base set from the engineered value of proved reserves.
Social infrastructure PPP structures explained
Social infrastructure PPP structures finance schools, hospitals and related public facilities through availability based private contracts.
Sponsor support agreements explained
A sponsor support agreement records limited recourse sponsor undertakings that back a project company beyond base equity contributions.
Step-in rights in project finance explained
Step-in rights let project lenders cure defaults and prevent termination of key contracts, though GI Hub data shows the right is rarely exercised.
Netting agreement derivatives explained
A netting agreement derivatives structure reduces counterparty exposure to one close-out amount across OTC trades under a master contract.
Parallel lending project finance structures
Parallel lending project finance places each lender in a direct loan with shared common terms, unlike B Loan participation behind one lender of record.
Pari passu clauses explained
A pari passu clause states that the debt ranks equally in right of payment with other unsecured and unsubordinated obligations of the issuer or borrower.
Port concession finance explained
Port concession finance funds terminal investment and operations under long term public private concessions repaid from port cash flows.
Power purchase agreement bankability
Power purchase agreement bankability is the capacity of a PPA's tariff, offtake and credit support terms to support limited recourse project debt.
ISDA credit support annex
An ISDA Credit Support Annex sets the collateral terms that reduce mark-to-market exposure under an ISDA Master Agreement for OTC derivatives.
Mining offtake finance structures
Mining offtake finance uses contracted sales of mineral production to support project or trade facilities repaid from offtake proceeds.
Most favoured nation clause finance
Most favoured nation clause finance terms protect existing lenders by raising their yield if new incremental debt prices above an agreed cushion.
Negative pledge clauses explained
A negative pledge clause restricts a borrower from granting security over assets to other creditors, protecting unsecured or equal ranking lenders.
Debt service undertaking explained
A debt service undertaking is a sponsor or third party commitment to cover defined shortfalls in project debt service for a limited period.
EPC contract project finance structures
EPC contract project finance allocates design, procurement and construction risk to a single contractor under a lump sum turnkey price and schedule.
Expropriation cover under political risk insurance
Expropriation cover under political risk insurance protects against government acts that reduce ownership, control or rights in an insured investment.
Carbon contracts for difference explained
Carbon contracts for difference pay the gap between a CO2 strike price and a carbon market reference to derisk industrial decarbonisation.
Contingent equity project finance explained
Contingent equity project finance is a sponsor commitment to inject further capital if defined cost overrun or funding shortfall events occur.
Cross default clauses explained
A cross default clause makes a default under other financial indebtedness an event of default under the loan agreement, subject to thresholds.
Data centre project finance structures
Data centre project finance funds hyperscale and colocation capacity via limited recourse debt repaid from contracted digital infrastructure cash flows.
What is breach of contract cover
Breach of contract cover is political risk insurance for losses from a host government's breach or repudiation of a project contract.
Assignment of contracts project finance
Assignment of contracts project finance security gives lenders rights over project agreements and related receivables as collateral.
Availability payment PPP structures
An availability payment PPP pays the private party for making an asset or service available at defined quality, with demand risk retained by government.
Battery storage project finance structures
Battery storage project finance relies on capacity, tolling or hybrid offtake because merchant arbitrage rarely supports long-tenor debt.
Blended finance project finance structures
Blended finance project finance uses development finance to mobilise commercial capital for sustainable projects in developing countries.
CRE DSCR vs project finance DSCR
CRE DSCR vs project finance DSCR compares net operating income cover on property debt with CFADS based cover in limited recourse project loans.
ECA vs MDB mandates and financing roles
ECA vs MDB roles differ: export credit agencies support national exports under OECD rules; multilateral development banks finance member development.
Funded vs risk participation in loans
Funded vs risk participation compares upfront funding of loan economics with contingent reimbursement of the grantor after borrower default.
Green bond vs project loan financing
Green bond vs project loan financing contrasts ICMA use-of-proceeds bonds with bank project loans, including green project bonds and limited-recourse debt.
LLCR vs DSCR in project finance
LLCR vs DSCR compares loan-life present-value coverage with period-by-period debt service coverage in project finance credit analysis.
Project finance due diligence workstreams
Project finance due diligence organises legal, technical, financial, market, E&S and integrity reviews before commitment.
Conditions precedent drawdown requirements
Conditions precedent drawdown rules list the documents and facts that must be satisfied before a lender advances funds.
Covenant waiver process in project finance
The covenant waiver process records lender consent to a breach or prospective breach without rewriting the entire facility.
EU Taxonomy project finance explained
EU taxonomy project finance links known-use-of-proceeds lending and SPV exposures to Taxonomy-aligned activities under Regulation (EU) 2020/852.
MLA bookrunner facility agent roles
MLA bookrunner facility agent roles allocate arranging, syndication book-building and post-signing administration in syndicated loan documentation.
OFAC 50 percent rule explained
The OFAC 50 percent rule treats an entity owned 50 percent or more, directly or indirectly in aggregate by blocked persons, as itself blocked.
Project finance cash waterfall explained
A project finance cash waterfall sets the contractual order for applying project receipts through controlled accounts.
Project finance hedging requirements
Project finance hedging requirements set when interest rate, currency or commodity derivatives must be maintained by the borrower.
EU AML Directive customer due diligence rules
EU AML directive customer due diligence rules cover identity, beneficial owner, purpose and ongoing monitoring under Directive 2015/849 as amended.
EBRD financing products and mandate
EBRD financing products include loans, equity and trade guarantees supporting transition to market oriented economies in its regions.
EIB lending criteria explained
EIB lending criteria require EU policy alignment, additionality, eligible sectors and exclusion of listed activities for each operation.
IFC project finance role and products
IFC project finance supports private enterprises in developing member countries through loans, equity, guarantees and mobilisation.
Multilateral development banks list compared
A multilateral development banks list compares World Bank Group, regional MDBs and the EIB by mandate, clients and product focus.
Climate Change Sector Understanding explained
Climate change sector understanding explained as OECD Arrangement Annex I rules for official support to eligible climate related exports.
Islamic project finance structures explained
Islamic project finance uses a project based structure with Sharia aligned features and documented asset, cash flow and risk allocation.
Project bonds in infrastructure finance
Project bonds finance infrastructure through an issuer whose repayment depends on defined project cash flows, contracts and security.
Corporate lending vs project finance
Corporate loan vs project finance compares borrower balance sheet lending with repayment based on project cash flows through an SPV.
Greenfield vs brownfield project finance
Greenfield vs brownfield projects in project finance, contrasting construction stage risk with operating asset cash flow risk.
Mezzanine vs senior debt in project finance
Mezzanine vs senior debt compared by priority, security ranking, covenants and recovery in project finance.
Parent company guarantees vs bank guarantees
Parent company guarantee vs bank guarantee compared as corporate support versus independent demand undertakings.
Buyer credit vs project finance structures
Buyer credit vs project finance compares an ECA backed buyer loan with financing repaid primarily from project cash flows through an SPV.
Country risk analysis in bank lending
Country risk analysis evaluates macroeconomic and political conditions that impair borrower repayment capacity across lending portfolios.
Cover ratios in project finance
DSCR, LLCR and PLCR are project finance cover ratios measuring debt service capacity from periodic cashflow and long-term project economics.
Early warning signals in credit portfolios
Measurable indicators of credit deterioration in loan portfolios, and how regulated institutions detect them before borrowers default.
ESG due diligence in project finance
How lenders structure ESG due diligence in project finance to assess environmental and social risk, stakeholder engagement and covenant frameworks.
KYC vs KYB in bank onboarding
KYC verifies individual customers; KYB establishes business legitimacy and beneficial ownership. Both are mandatory under AML and CTF frameworks.
Limited recourse vs non-recourse project finance
Recourse structure defines lender claims in project finance. Non-recourse limits repayment to project cash flow; limited recourse adds sponsor guarantees.
Loan covenant monitoring between reporting dates
How lenders monitor loan covenants between reporting dates: interim metrics, early warning systems and regulatory expectations.
MIGA cover vs private political risk insurance
MIGA vs private political risk insurance explained by mandate, eligibility, tenor, perils and role in investment risk cover.
OFAC, EU, UK and UN sanctions lists compared
A sanctions lists comparison of OFAC, EU, UK and UN regimes, covering maintainers, legal bases, scope and delisting routes.
Offtake agreement types and bankability
Binding purchase agreements secured and bankable through counterparty credit quality, contract structure, and revenue certainty requirements.
Political risk insurance in project finance
How political risk insurance protects project debt and equity in cross-border transactions, covering war, expropriation and currency inconvertibility.
Screening a company for sanctions exposure
How to screen a company for sanctions exposure across OFAC, UK, EU and UN consolidated lists
Syndicated project finance loans
How syndicates distribute capital and risk in project finance loans across multiple lenders from origination through repayment.
Ultimate beneficial owner identification in bank onboarding
How banks identify and verify ultimate beneficial owners during credit origination to manage ownership and control risks.