• Introduction

Introduction

With an in-depth understanding of lending institutions' approach to risk, the project finance team is ideally placed to advise sponsors on the structuring of a project to attract optimum financing, with an emphasis on risk analysis and risk mitigation. Equally, the team is well equipped to assist banks in the structuring of this complex form of financing and in preparing the documentation which is required to achieve financial closure. Due diligence plays a large role in project financing, the end result being a bankable feasibility study. The team has extensive experience in this regard.

Documentation is complex and includes:

Project documents, such as –

• Concession or license agreements
• Shareholder or sponsor joint venture agreements
• Design and construct (turn-key) agreements
• Supply agreements
• Off-take agreements
• Operation and maintenance contracts

Financing documents, including –

• Loan documentation
• Security documentation
• Intercreditor agreements which regulate the modus vivendi between members of a lending syndicate

Project finance is particularly appropriate for infrastructure development on the African continent, across a wide range of sectors, and, based in South Africa, our Johannesburg team is ideally placed to assist clients in such ventures.

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