News 4
Project finance—key project parties
Published by a LexisNexis Banking & Finance expert
Practice notesProject finance—key project parties
Published by a LexisNexis Banking & Finance expert
Practice notes
The main project parties in a typical project finance transaction are:
- •
the Sponsor(s)
- •
the project vehicle (referred to in this Practice Note as the 'Project company') which is typically the Borrower of the project Loans
- •
a holding company
- •
contractors and sub-contractors
- •
suppliers
- •
off-takers, and
- •
the host government
The main finance parties in a typical project finance transaction are explained in Practice Note: Project finance—key finance parties.
Sponsor
The sponsor is the party which develops and manages the project.
The sponsor is typically a private company or group of companies. The government of the country in which the project is located (the host government) may also sometimes be a sponsor particularly in projects involving public services, eg infrastructure (roads, rail, ports etc), social facilities (schools, hospitals, prisons etc) or natural resources (oil, gas, mining etc).
Even where a host government is not involved in initiating a project, it often has an important role to play in making a project viable—see Host government below.
In some types of projects, a consortium
Want to see more?
To read the full document, register for a free Lexis+ trial
Powered by Lexis+®
Jurisdiction(s):
United Kingdom
Related documents:
Practice notes 7
Q&As 1
Key definition:
Sponsor definition
What does Sponsor mean?
In acquisition finance transactions the institutional equity investor that acts as the financial sponsor of the transaction.
CONTACT US
