Project Funding
Long-term capital for new projects and major expansions.
Structured long-term finance for greenfield and brownfield projects, capacity expansion and infrastructure — with tailored repayment aligned to project cash flows.
Interest rates and terms are indicative and subject to lender approval.
Project Funding
Key features
- Large-ticket, long tenure
- Cash-flow-aligned repayment
- Term loan + working capital
- Advisory on structuring
Eligibility
- Viable project with DPR
- Promoter contribution
- Strong credit & track record
Documents
- Detailed project report (DPR)
- KYC & financials
- Approvals & permits
- Collateral documents
In depth
Understanding Project Funding
The long-term financing of infrastructure and industrial projects based upon the projected cash flows of the project rather than the balance sheets of its sponsors.
- The Mechanism
- Debt repayment depends entirely on the cash flow generated by the completed project.
- Key Components
- Special Purpose Vehicle (SPV), Detailed Project Report (DPR), and Sponsor equity.
- What the Results Mean
- Allows companies to undertake massive infrastructure projects while limiting the risk to the project entity.
- Smart management
- Rigorous feasibility studies and risk management during construction are critical to prevent cost overruns.
Regulatory source
Governed by RBI Master Directions on Bank Financing for Infrastructure Projects.