Finance Scheme

Finance scheme refers to a scheme that shows the relationships between the individual fund providers and a project, and a project and stakeholders, and matters related to fund contribution. It can be referred to as a picture that shows the whole relationship seen from the viewpoint of fund procurement. Finance schemes recognize project elements from the viewpoint of fund procurement for projects and systematize major relationships among them.

The idea that a debt provider can hypothecate the framework that produces cash flow of the project is based on the premise that elements (entities) concerning a project are substitutable in the market and that survival and continuance of projects become possible by substituting elements that have failed or broken down. Therefore, various contracts become necessary between financial institutions and all stakeholders concerned.

Multiple commercial banks

Forming a bank syndicate

Contract between the sponsor and bank syndicate

Insurance institutions

Senior lender

Commercial bank syndicate

Institutional financial agencies

Bond holders a ; k

Investor and sponsor as a provider of subordinate loan funds

Subordinate agreement

Agreement among loan banks Loan contract, Security contract

Prior agreement on contract assignment

Subordinate loan contract

Project Company

Product sales company

Investor A

Sponsor contract

Investment company

Contract among shareholders

Investor B

Agreement among loan banks Loan contract, Security contract

Prior agreement on contract assignment

Project Company

Product sales company

Subordinate loan contract

Investment company

Contract among shareholders

Investment

Insurance

company

company

Supplement of credit (if necessary)

Construction contractor

Raw material supplier

Operation company

: : :

;

;

Parent company

Parent company

Parent company

Supplement of credit (if necessary)

Supplement of credit (if necessary)

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