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PROJECT FINANCING IN THE CARIBBEAN

26-AUGUST-2004. PROJECT FINANCE:. The financing of the development or exploitation of a right, natural resource or other asset where the bulk of the financing is to be provided by way of debt and is to be repaid principally out of the asset being financed and its revenues.. 26-AUGUST-2004. Why Choo

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PROJECT FINANCING IN THE CARIBBEAN

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    1. 26-AUGUST-2004 PROJECT FINANCING IN THE CARIBBEAN Caribbean Commercial Law Workshop Montego Bay, Jamaica

    2. 26-AUGUST-2004 PROJECT FINANCE: The financing of the development or exploitation of a right, natural resource or other asset where the bulk of the financing is to be provided by way of debt and is to be repaid principally out of the asset being financed and its revenues.

    3. 26-AUGUST-2004 Why Choose Project Finance Insulation of sponsors Non-consolidation of project debt onto sponsors balance sheets Sharing of risk with others Sponsors ability to borrow limited by covenants negative pledge

    4. 26-AUGUST-2004 Why Choose Project Finance Sponsor engaging in multiple projects compelling need for external financing Multiple sponsors make sharing of risks extremely difficult, therefore SPV is an attractive option Tax advantages in some jurisdictions Jurisdiction may compel use of locally incorporated vehicle.

    5. 26-AUGUST-2004 Key Sponsor Issues Respective roles of each sponsor Appointment of advisers to the project Capitalization of project (Debt/Equity Ratio) Dividend distribution policy Management of project vehicle Sales of shares and pre-emption rights

    6. 26-AUGUST-2004

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