Structuring a project finance
Produced in partnership with Julian Nichol of Akin Gump Strauss Hauer & Feld
Structuring a project finance

The following Banking & Finance practice note produced in partnership with Julian Nichol of Akin Gump Strauss Hauer & Feld provides comprehensive and up to date legal information covering:

  • Structuring a project finance
  • Introduction to project finance structures
  • What is project finance?
  • What does ‘project structure’ mean in the context of project finance?
  • Specific structures used to overcome identified project risks
  • (i) Basic structure of a project finance transaction
  • (ii) Case study: Azura Edo IPP, Nigeria
  • (iii) Other potential structuring innovations for a project finance transaction

Introduction to project finance structures

This Practice Note: (i) considers what is meant by ‘structure’ in the context of a project finance transaction and identifies key issues that inform the approach to structuring a project finance transaction, and (ii) looks closely at the Azura Edo independent power project in Nigeria (Azura Edo IPP) as a case study to help identify and explain a number of recent and innovative project finance structuring solutions which have been successfully implemented in order to overcome certain identified risks and challenges. This Practice Note is not intended to be a general introduction to project finance and does therefore assume a basic familiarity with its concepts (see Practice Note: Introduction to project finance).

This Practice Note does not cover those structures peculiar to the US project finance market, such as tax equity driven structures for renewable energy project financings or the differing approach in the US to structuring reserve-based project loans.

The focus in this Practice Note is on construction financings—that is, new projects being developed from scratch (also known as ‘greenfield projects’), rather than the sale or purchase of existing operating assets (often referred to as secondary market transactions) which account for a lot of the market activity at the time of writing. The content of this Practice Note could generally be applied to the asset class commonly referred to as ‘energy

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