Stakeholders in Sustainable Project Finance

Keys for Understanding them

Project Sponsors

Project Sponsors are those companies, agencies, or individuals who:

  • have the idea and promote a project;
  • bring together the required parties to get the project underway;
  • obtain the necessary permits from the various agencies in the relevant jurisdiction;
  • are investors in the equity of the project company; and
  • provide support to the project company in a variety of ways.

Lenders

Lenders are financial institutions that provide loans (debt financing) for the construction and initial operation of the project:

  • Lenders may be commercial banks, saving banks, savings and loan associations, credit unions, multilateral banks, or export credit agencies.
  • Depending on the size and risks of the project they can be either a single lender or a syndicated group of lenders.

Project Finance Facilitator

Project Finance Facilitators are specialized consultancy companies providing support to the Project Sponsor to reach the Financial Close with the Lenders.

  • These firms fill the gaps of the Project Sponsor in preparing the Project Finance documents and in coordinating the different parties providing input to those documents.
  • Their scope is more or less extensive depending on both the experience of the Project Sponsor and its willingness to participate in the development and project management.
  • Based on the above, Project Finance Facilitators may play from a marginal role to acting as Project Managers of the Project Finance on behalf of the Project Sponsor.

Project Finance Stakeholders

  • Project Sponsor who invest in equity
  • Equity Investors
  • Off-Takers who receive the product
  • Lenders who lend the funds
  • Multilateral Agencies and Export Credit Agencies who also lend funds
  • Project Finance Facilitators
    • Legal Advisors
    • Technical Advisors
    • Financial Advisors
  • Regulatory Agencies who grant the permits and licenses
  • EPC or Construction Contractors who may engineer, procure and construct
  • Equipment Suppliers
  • Insurance Providers
  • Hedge Providers
  • Operator who will operate the facility once constructed

Reach Us

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juan.ramon.miguelez@3sustainability.com

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