PROJECT FINANCE (PF)
IPF engages in structuring and packaging the transactions whereby both capital goods and working capital financing is required. The Company utilizes mixture of financing tools depending on the availability of sources and project specifications. The financing terms varies depending on the projects’feasibility, industry, economic and other technical specifications. specially in power projects, limited recourse financing is possible with collaterals on off-take contracts.
In short, Project Financing is a financing facility that determines the loan collateral mainly by evaluating the Project in terms of the actual cash flow generated and the assets of the Project itself, not of the Company which owns the Project. Project Financing focuses not on the Company’s general financing needs, but on the financing needs of the investment project and its projected cash flow.
Project Financing was derived from the quest for wide availability of different resources and financial instruments that could be used to improve current investments or to engage in different fields without, of course, distorting the company’s current balance sheet structure. Project specific risk management strategies must be used as much as possible in order to meet such demands and to form the financing packages required.