Project Finance
Financial solution for an entire project provided through mix of different financial tools offered by Large and medium size enterprises.
Features-
- Financing for setting up new projects, expansion of existing projects, enhancement of production capacity, new concern of an existing group in different sectors, etc.
- Involves a number of equity investors, known as sponsors, as well as a syndicates of Financial Institutions and Banks that provide loans for the operation.
- In this scheme, non-recourse loans are secured by the project assets and paid entirely from project cash flow. Payments are not made from the general assets or creditworthiness of the project sponsors.
- Required debt-equity ratio should be maintained.
- Financial solution for the entire project may be provided through a mix of different financial tools from wide range of services offered by UCL.
- Different repayment structures are available depending on financial product and cash flow of the project.
Eligibility-
- Project must be feasible and requirement from all concerned authorities must be meet.
- The project must generate sufficient cash flow to meet the long-tram debt.
- Very competitive interest rate.
- Financing amount to be determined as per company policy.
- Repayment through Installments may be equal or structured (step-up, step-down, bullet, etc.) or as per company policy.
- Security: Acceptable Collateral (Land, Building etc.), Lien of shares, Cash Security.