Project Financing can be defined as creating a non-return or partially reversible financing source, based on the cash flow generated by the project in loan repayment and capital profitability calculations for funders to finance economically separable investment projects.
Project Finance has become a preferred lending instrument for many featured project investments in recent years. In this context, Project Finance is the establishment of a financing structure that will ensure the repayment of the loan based on the cash flow to be created by the project, and primarily evaluating the assets of the Project as a guarantee for the loans given. Project Financing focuses not on the overall loan need of a Company, but on the loan requirement arising from entirely new or growth-oriented investment projects or initiatives such as M&A or assets, and the cash flows of these projects.
Duties of Toacton in Project Finance process
Identifying Project risks in the light of macroeconomic indicators and sectoral data,
Preparation of the financial feasibility report by evaluating the project from financial, economic and technical aspects,
Determining the optimum debt-equity ratio, maturity structure, and pricing for the project,
Creating project cash flows within the determined scenarios,
Determining the guarantee and other loan conditions of the project,
Participation in consortiums/syndications established with domestic/foreign banks, if necessary
Managing the loan contract and guarantee documentation process of the project
The processes are operated and the necessary financing is provided for the completion of the Project.