Limited Resource Project Financing

This is an exercise where a financing scheme has been devised and structured where through either a direct financing exercise or an issuance of financial instruments, funds raised therefrom are deployed towards getting a project kick started.

In most cases, such financings are raised to provide funds to kick start “green field” projects. Financiers through direct financing or investors through subscription of dedicated financial instruments look towards repayment through cash inflows derived from the underlying project.

In the event, the underlying project does not yield the desired cash flow that meets the repayment obligations, financiers and investors shall have recourse to off takers or other third parties or promoters of the project for repayment, albeit such recourse may only raise limited funds to repayment of outstanding obligations.