Introduction to

Project Finance
PRESENTED BY:

Dr. Amit Hedau,

Asst. Professor, NICMAR
Table of Meaning of Project
Project Finance

Contents Project finance Vs Corporate Finance

Advantages and Disadvantages of Project Finance
 Meaning of Project &
Its Features
01. Definition Features Features Features
Project Finance is the Long Term Financing Project must generate Project has a finite life
structured Financing of a of a Specific Project sufficient cash flow for debt
special economic entity—the
SPV, or special-purpose repayment and dividend.
vehicle, also known as the
project company—created by
sponsors using equity or
mezzanine debt and for which Project Company is a Debt is secured by assets of
the lender considers cash Special Purpose Vehicle project company (SPV)
Flows as being
the primary source of loan (SPV)
reimbursement, whereas
assets represent only
collateral..
Need of Project Financing
• Alternative 1 – Balance Sheet Financing.

• Alternative 2 –
• Project Financing using SPV.

Project finance is classified as a non-recourse type of financial structure.

 Project Finance
01 Advantages 02 Disadvantages
1. Complexity of the process due to the increase in the
1. Allows the promoters to undertake projects without exhausting their
number of parties and the transaction cost.
ability to borrow amount for traditional projects.
2. Expensive as the project development and diligence
2. Limits financial risks to a project to the amount of equity invested.
process is a costly affair.
3. Enables raising more debts as lenders are sure that cash flows from the
3. Litigious with regard to negotiations.
project will not be siphoned off for other corporate uses.
4. Complexity due to lengthy documentation.
4. Provides stronger incentives for careful project evaluation and risk
5. Requires broad risk analysis and evaluation to be
assessment.
performed.
5. Facilitates the projects to undergo careful technical and economic
6. Requires qualified people for performing the
review.
complicated procedures of project finance.
6. Eliminates the dependency on alternative nature of funding a project.
7. Obligations regarding the trust fund account need to
7. Facilitates the arrangement of liability financing and credit
clearly specify.
improvement, accessible to the project but unavailable to the project
8. Higher level of control which might be exercised by
sponsor.
the banks, which might bring conflict with the
8. Enables the diversification of the project sponsor’s investments to
businesses or contract.
reduce political risk.
9. Gives more incentive for the lender to cooperate in an atmosphere of a
troubled loan.
10. Enables to have prolonged credit opportunities.
11. Matches specific assets with specific liabilities.
 Stages in Project in Financing
1 2 3
Pre-Financing Financing Post Financing
1. Arrangement of Finances 1. Timely Project Monitoring
1. Identification of the Project Plan
2. Loan or Equity Negotiation 2. Project Closure
2. Recognising and Minimising the Risk
3. Documentation and Verification 3. Loan Repayment
3. Checking Project Feasibility
4. Disbursement

LIFE CYCLE OF PROJECT: From Project Idea to CP &

CA
Types of Contract
in PPP Projects
PRESENTED BY:

Dr. Amit Hedau,

Asst. Professor, NICMAR
 1. Meaning and Features of Project Contract

2. Structure of Project Contract

3. Need and Importance of Project Contract

4. Types of Contract

Table of A. Shareholders Agreement

B. State Support Contract

Contents C. OMDA Agreement

D. Loan Agreement

E. EPC Contract

F. Turnkey Construction Contract

G. Purchase and Sales Agreement

H. Raw Material Supply Agreement

 Project Contract
Definition
Features
A project contract is a legal
1. Offer and Acceptance
agreement between two or
more parties that will be 2. Scope of Work
working on a project that 3. Contract Price
outlines the obligations,
4. Condition Precedents (CP)
duties, and expectations of
both parties. 5. Risk Sharing
 Structure of Project Contract
Contractual and Financing Structure of National Highway 1 Panipat–Jalandhar Toll
Road Project
Need and Importance of Project
Contract
PWD ends up paying Rs244cr for Rs2.36cr works, contractor se ..
Types of Contract in
Project Finance
Shareholders Agreement

A corporation that has multiple shareholders is inevitably going to need

an agreement that outlines what happens when one of those
shareholders wants to leave the corporation, sell his or her shares, or
take on more business partners.
At a basic level, a shareholders agreement sets out the rights,
restrictions and obligations of each shareholder relative to one another,
and sets out the rules of the game in the event of an exit or dispute.
Right of First Refusal
in Shareholders
Agreement:

A Case of Ambani
Brothers
State Support Agreement
CHENNAI: The much-awaited Maduravoyal-Chennai Port elevated corridor project would be constructed at a cost of
Rs 5,770 crore. A memorandum of understanding would be signed between the National Highways Authority of India
(NHAI), the Navy, Chennai Port and the Tamil Nadu government, finance minister Palanivel Thiyagarajan announced
on Friday.
The projec was conceived in 2010 by the then DMK government headed by M Karunanidhi. The project commenced in
September 2010. It was aimed at easing the city traffic and free movement of freight fro and to the port.

However, it was stalled after the AIADMK came to power in 2011 as then chief minister J Jayalalithaa opposed the
project, stating that it would have an adverse impact on environment and also result in flooding the residential areas.
The government had also defended its decision pointing out that 14km out of the 18.3 km of the elevated expressway
would fall on the river Cooum. The pillars were erected on the river.

The NHAI resumed the project after the TN government signed a state support agreement (SSA) for the project in
December 2016.
State Support Agreement
State Support Agreement
means the agreement
entered into amongst the
Government and the
Concessionaire for
provision of support,
backup, assistance and
services required from
Government in Uttar Pradesh government
signs state support agreement
connection with the with Noida International
Project. Airport
OMDA Agreement
______and JVC have
entered into
an Operation,
Management and
Development
Agreement (hereinafter
the OMDA) whereby
they have agreed upon
the terms and conditions
upon which the JVC shall
operate, finance and
manage the asset.
Loan Agreement

A loan agreement is a formal

contract outlining important
counterparty information Loan Agreement between ADB and Soma Isolux NH

and responsibilities, as well One Toll Way Private Limited for the expansion (to
six lanes) of the National Highway 1 Panipat–
as credit terms like the loan
Jalandhar Toll Road Project.
amount, the type of loan
being extended, the
repayment schedule, and the
interest rate.
Power Purchase Agreement
A power purchase
agreement (PPA), or
electricity power agreement,
is a long-term contract
between an electricity
generator and a customer,
usually a utility, government
or company. PPAs may last
anywhere between 5 and 20
years, during which time the
power purchaser buys
energy at a pre-negotiated
price.

Material Supply Agreement
it is a sale agreement where
one party agrees to sell and
the other agrees to buy
definite goods of economic
value.
Few Terms of Raw Material Supply
Agreement
1. Sale, third party sales whether allowed
2. Non-Competition
3. Non-Solicitation.
4. Quality.
5. Shipping, Packaging and Formalities
6. Inspection of Goods and Records
7. Seller’s Warranties
8. Validity of the Agreement.
9. Statutory Requirements
10.Legal Remedies and termination
11.Indemnification
12.Independent Contractors
13.Assignment
Role of Legal and Technical
Advisor in Project Finance
PRESENTED BY:

Dr. Amit Hedau,

Asst. Professor, NICMAR
 1. Role of Lawyers

Table of A. Forming Group of Sponsors

Contents
B. Industrial Development of Project

C. Project Financing

D. Maintenance of Project Financing

2. Role of Technical Advisor

 Importance of Legal Issues in
Project Financing
The Issue of Developing Airport
Financing of Bullet Train Project by Indian Railways
Green Field Air Port Project
 Role of Lawyers in
Project Financing
Understanding the basics of Project Finance is extremely important for a Lawyer to work upon the Legal due
diligence in Project Finance. The nature of project finance work also means that lawyers in this field gain a huge
amount of knowledge in Finance, Contract Drafting. Lawyers will be involved in not only the negotiation and
drafting, but will also be expected to review and comment upon the documentation being drafted by attorneys
located in each other jurisdiction applicable to the transaction. As a result, Lawyers are often required to
understand key documentation issues with the client. Attorneys also spend a great deal of time reviewing the
agreements applicable to a project, in order to prepare detailed due diligence report for the client. The purpose of
such due diligence reports is to advise the clients on contingent liabilities and legal risks associated with a project
that would be substantial to an investment or a lending decision. Given the technical nature of the project
agreements, Lawyers will be expected to take the information in coordinating input from the various technical,
financial, insurance and market consultants hired by the clients to assist in the due diligence and documentation
process.
Forming Group of Sponsors
01 Objective
02 Objective
To create the best possible Appointment of To obtain the best result for
legal basis for developing the one Legal Advisor itself in financial and
project so that future to represent the contractual terms when
contractual partners (lenders SPV structuring the project as a
but also the project joint venture.
company’s suppliers and
purchasers of goods or
services) see it as a solid and
cohesive venture
 Industrial Development of
Project
When speaking of industrial development of the project, this in fact refers to making the
necessary preparations to begin construction work but not construction itself. This is because
01
the necessarySubfinancing
headline is not yet available; in fact, work will begin when structuring the deal,
is complete. Typically this development stage concerns the project documents:

In this stage the project company sets up contracts and obtains permits and other legal papers
required to realize the necessary works and to operate in accordance with the aims of the
project. At this stage, the project company lawyers usually perform the task of drawing up a
complete list of these documents and finalizing and/or obtaining them.
 Project Financing
At this stage the project is almost entirely in the hands of lawyers. More than any other
document, the credit agreement is a contract that requires highly specialized lawyering.
Decisions Sub
of headline
a business nature required from the principal actors (arrangers and project
01
company’s sponsors) are the guidelines around which the credit agreement is fashioned.
This then becomes the control document for the entire project. In the early stages, a specific
project finance deal is above all an industrial idea regulated by a financing contract, which
will then provide most of the financial resources to realize the project itself.
Maintenance of Project Financing
This is the last step where the role of lawyer comes to an end. The project lawyer has to
maintain the relationship with various stakeholders of the project and express his opinion
01 Sub headline
on legal issues arising during various stages of the project.
Role of Technical Advisor (Independent
Engineer) in Project Finance

1. Initial Due Diligence Reporting

2. Monitoring Realization of the Project (Engineering and Construction)
3. Assistance at the Time of Project Acceptance
4. Monitoring Operations Management
Types of Risk in Project
Finance
PRESENTED BY:

Dr. Amit Hedau,

Asst. Professor, NICMAR
 1. Meaning Project Risk

Table of 2.

3.
Phases of Risk

Risk Identification

Contents 4.

5.
Risk Mitigation

Risk Allocation Framework

 Meaning of Risk

01. Definition

Risk implies future Within project management, risk management

uncertainty about refers to activities for minimizing project risks, and
deviation from
expected outcome. thereby ensuring that a project is completed within
time and budget, as well as fulfilling its goals.
Phases of Risk

1. Pre-completion phase risks .

2. Post-completion phase risks .
3. Risks common to both phases
Risk Mitigation Measures
 Activity Planning Risk
The logical links among various activities are vital in order to arrive at the
construction deadline with a plant that is actually capable of functioning. Grid
analysis techniques (the critical path method—CPM—and the project evaluation
and review technique—PERT), supported by software, make it possible to map out
the timing of the project activities (Gantt chart). Delays in completing one activity
can have major repercussions on subsequent activities. The risk is, in fact, that the
structure on which the SPV depends to generate cash flows during the operations
phase may not be available. This is known as planning risk.
Technological Risk

Construction Risk

Exchange Rate Risk and De

rivative Contract
Inflation and Interest Rate Risk
Environmental Risk
Environmental Risk
INSTRUMENTS FOR MITIGATING URBAN TRANSIT RISKS
1. EQUITY GUARANTEES
2. DEBT GUARANTEES
3. EXCHANGE RATE GUARANTEES
4. GRANTS/SUBSIDIES
5. SUBORDINATED LOANS
6. MINIMUM TRAFFIC AND REVENUE GUARANTEES
7. CONCESSION EXTENSIONS AND REVENUE ENHANCEMENTS
Role of Insurance Advisor in
Project Finance
PRESENTED BY:

Dr. Amit Hedau,

Asst. Professor, NICMAR
Role of Insurance Advisor:
1. Preliminary Insurance Report Phase

2. Final Insurance – Construction Phase

3. Final Insurance – Operation Phase

Insurance Products:
1. Contractor All Risk Policy
2. Erection All Risk Policy
3. Delay in Start-up / ALOP
4. Machinery Breakdown (MBD)
5. Contractor Plant & Machinery Policy (CPM)
Project Finance- Practical Case Study – Second
Edition by Henry Davis Page no. 90 and 158
Financial Analysis of
Kochi Airport Project
Valuing the Project Cash Flow During Life
Cycle of Project

PRESENTED BY:

Dr. Amit Hedau,

Asst. Professor, NICMAR
 1. Need for Analyzing Project Cash Flow

2. Waterfall Structure of Cash Flow

Table of 3. Dynamic Structure of Project Cash flow

Contents
4. Input Require for Project Cash Flow Valuation

5. Operational Cash Flow and Contractual

Arrangements

6. Process of Defining Capital Structure

7. Equity Consideration
Need for Project Cash Flow
Analysis
Waterfall Structure of Operating Cash
Flow
Dynamic Structure of Project Cash
Flow Financing
during O&M
Phase

Sources of
Finance
to Fund CapEx
Input Require for Cash Flow
Valuation
1.The timing of the investment
2. Initial investment costs
3.Grants (when applicable), especially in PPP initiatives
4.Analysis of sales revenues and purchasing costs
5.Analysis of operating costs (Staff, Maintenance, Energy and Security)
6.Fluctuations in working capital (Stand-by Facility)
7.Taxes (With Taxes and Without Taxes)
8.Macroeconomic variables
Operational Cash Flow and
Contractual Arrangements
Process of Defining Project’s Capital
Structure The two key factors for setting up the optimal
capital structure lie at the centre of the
diagram. Operating cash flow during the
operating life represents cash available for debt
service, while the financial structure and
assumptions regarding loan repayment define
the cash requirement. During the construction
phase the operating cash flow is negative. This
results in a financial requirement to be covered
with both share capital from sponsors and,
more importantly, bank loans organized by the
arranger. Conversely, during the post
construction phase, operating cash flow
becomes positive and has to be able to support
the debt service (principal and interest), the
obligation to create and maintain reserve
accounts, and reimbursement on capital
invested by sponsors
Work Flow in
Choosing a Meeting the
Expectations
Financial
Structure
Calculate the WACC
Calculate the IRR, EIRR and NPV

Conduct Ratio Analysis and

Economic Analysis
Perform Sensitivity Analysis
 Sensitivity Analysis - Example
The robustness of the project's viability is further demonstrated by the sensitivity analysis. Because of the
uncertainties surrounding many of the variables like traffic forecasts, cost changes due to detailed designing, etc., a
sensitivity analysis was carried out to test the economic strength of the project. The variations in the following
parameters have been examined, considering them to be on the conservative side:
Increase in cost by 15 percent
ii) Decrease in benefits by 15 percent
iii) Increase in cost by 15 percent and decrease in benefits by 15 percent
The results of the sensitivity analysis are as follows:
Source of Finance
Initial Funding

Equity

Debt
Initial Funding
Initial Funding
Equity – As Source of Finance
Merits and Demerits of Equity Financing
Conditions for Equity Financing (Lock-in Period, Transfer and Mini. Holding etc.)
Equity Consideration
1. The degree of financial soundness of the project
2. The level of risk lenders are willing to accept
3. Precedents on the domestic or international financial
market
4. Operating Cash Flow > Debt Service
Potential Equity Contributors
1. Government/Govt. Agency

2. SPV formed for the Project

3. Financial Institutions/ Technical Partners

4. Technical Partners and Associated Firms

Debt – as Source of Finance
Merits and Demerits
Potential sources of Debt Finance
Debt Consideration
Debt – as Source of Finance
Debt – as Source of Finance
Debt – as Source of Finance
Debt – as Source of Finance
Choice of Debt Vs Equity
Senior Vs Junior Debt Option
Merits and Demerits
Bond– as Source of Finance
Various Categories of Project Bonds

1. Nationality of the issuer in terms of issue currency for securities and placement market
2. Target investors
3. Existence of capital and interest payment guarantees or otherwise
4. Subordination clauses
5. Interest calculation method
6. Capital repayment method
 Bond– as Source of Finance

When should Project Bonds be Used? (6.11.4 Page no. 242)

1.Investor Target
2.Tenor of Financing
3.Preservation of the Sponsors’ Financial Flexibility
4.Inflation-Linked Bonds
5.Structure for Utilization and Repayment of Funding
6.Credit Policies and Market Sentiment
7.Financing Terms and Conditions
8.Covenants and Monitoring Management of the Project
Bond– as Source of Finance
Process of Issuing Project Bond
Municipal Bonds
Municipal bonds are a special category of bond
issued by public bodies in order to finance
projects linked to the mission of local
authorities. While these are not part of the
project bond category discussed in previous
sections, they are worth mentioning because they
are structured in the same way as project bonds.
The term municipal bonds refer to bonds issued
by public bodies such as states, governments,
provinces, municipalities, or other bodies in
order to finance operating expenses or specific
projects. These bonds can be sold either by
public placement to retail investors or by private
placement targeting institutional investors.
These instruments can be classified into the
following categories:
1. General obligation bonds.
2. Project revenue bonds.
3. Dedicated revenue bonds
Municipal Bond and Green Bonds

1.The Ghaziabad Municipal Corporation,

a civic body in Uttar Pradesh,
became India’s first municipal
corporation to successfully list
the country’s first green municipal
bonds on the Bombay Stock Exchange
(BSE) on April 08, 2021. The corporation
announced raising Rs 150 crore at 8.1 per
cent.

2.Greenko Wind Projects (Mauritius) Ltd

(GWPM), the financing vehicle for the
integrated renewable energy storage
project Greenko Energy Holdings, raised
$750 million through an issue of offshore
green bonds that will mature in three
years. The bond carried a coupon of 5.5%
Project Leasing
While the contract does not differ from a regular leasing contract, some complications must be kept
in mind when comparing project leasing to a normal finance leasing contract:
1. The type of asset obtained in leasing by the project company.
2. Relations with lenders as regards the debt (essentially with the pool of banks that materially
disburses funding to complete the structure to be assigned in leasing)
The asset assigned in leasing can be a plant or sometimes a very complex structure that is assigned
to the SPV on a turnkey basis after construction and initial testing. So, the SPV transfers the
problems of organizing and monitoring the construction phase to the leasing company. Because the
lessor/leasing company is the owner of the asset right from the start of the construction phase, it
obviously must assume the risks of this phase and negotiate all the guarantees that enable it to cover
all risks adequately.
Project Leasing
Cover Ratios

PRESENTED BY:

Dr. Amit Hedau,

Asst. Professor, NICMAR
 1. Financial Flow and Return Indicator

2. Cover Ratio – DSCR and LLCR

Table of 3. Debt Repayment Option

Contents
Cover Ratios The ratio tells us that in any given year of operations, the financial
resources generated by the project (represented by the numerator)
must be able to cover the debt service to lenders (the denominator of
the quotient). In theory, the lowest number the coefficient can be is 1.
However, both the sponsor and the lenders reject
the hypothetical scenario of a DSCR of 1.
Cover Ratios
 Loan Life Cover Ratios

However, DSCR captures just a single point in time, Limitations of LLCR ?

while LLCR allows for several time periods, which is
more suitable for understanding liquidity available
for loans of medium to long time horizons.
Cover Ratios as an Application of the
Certainty Equivalent Method
Two lenders (Alfabank and Betabank) are willing to accept 1.3 and 1.6
DSCRs, respectively, for all years of the loan repayment plan.

Having requested a DSCR of 1.3, it is as if Alfa bank were to weight each nominal flow
produced by the initiative at approximately 77% of its value. Beta bank, the more risk-
averse lender, actually uses a weight of 62.5%.
Debt Repayment Option

1. A tailor-made loan repayment plan

2. A dedicated percentage loan repayment plan

Debt Repayment Option
Debt Repayment Option
Debt Repayment Option

Total DS is 70% of OCF i.e. 131.67*.7 = 92.17 in first year

Debt Repayment Option

Total DS is 60% of OCF i.e. 131.67*.6 = 79.02 in first year

Project Financing of
Pune Metro Project page no. 397
Project Default
Project Refinancing
The pool of lenders may change after the loan has been
structured, given that some banks may opt out of the deal and be
replaced by others. In these circumstances, can terms and
conditions for the funding be revised? Actually, it is rather
common practice to refinance an already-granted loan or to
increase it to reduce the sponsors’ equity commitment or to
change the contractual terms and conditions of the debt. Usually
the project sponsors themselves launch discussions to renegotiate
the debt.
Project Refinancing
Soft Financing (Waiver)
The waiver is the easiest and fastest way to refinance a deal. In
reality it would be more correct to speak of renegotiating
conditions, inasmuch as this approach doesn’t involve changing
the financial leverage decided for the project and the tenor of the
loan. In effect, the waiver is an amendment. Increasing financial
leverage (so-called re-gearing) or extending the tenor would, in
fact, increase the project’s risk profile. This would necessarily
mean discussing participation again with each of the banks in the
pool, considerably lengthening the time required to come to a
new agreement.
Hard Financing
Takeover

New Financing (New Lending)

Bond Issue at the End of Construction

Advisory and Arranging Activities for
Project Financing Funding

PRESENTED BY:

Dr. Amit Hedau,

Asst. Professor, NICMAR
 Types of Services

SOFT

HARD
 Advisory Services
1. To understand fully the sponsors’ objectives and then to identify alternative solutions to achieve these .
2. To evaluate risks inherent in the project and to attempt to find strategies to mitigate, manage, and allocate these risks.
3. To assist sponsors in preparing and negotiating major contracts concerning the project .
4. To assist sponsors as regards certification of all permits, licenses, and authorizations obtained .
5. To assist sponsors in preparing the business plan or by reviewing the plan already prepared by them.
6. To highlight problems sponsors have not considered but that must be resolved to ensure the deal’s success
 Arranging Services
Arranging services is a competitive area covered exclusively by commercial banks that:
1.Have good international coverage (this helps when structuring loan pools involving
banks from different countries) and

2.Have considerable financial strength and a huge amount of equity: in project finance
there is a symmetry between the size of the project and the size of the intermediary
that structures and negotiates the financing pool.
 Integration of Advisory and
Arranging Services
1. The first is to maintain a clear-cut division between the roles of financial advisor and arranger:
The borrower decides not to allow its financial advisor to participate in the loan pool once this is
structured (specialization model).
2. The second alternative is exactly the opposite, in which case the borrower decides beforehand
that the chosen financial advisor will also be the arranger in the second phase (integration
model).
3. The third situation lies somewhere between the previous two, namely, where the borrower
decides to allow its financial advisor to compete with others for the role of arranger.
 Fee Structure

Fee For Advisory Fee For Arranging

Retainer Fees Pure arranging
Fees
Success Fees
Fee for
in this case there is the guarantee that the necessary funds will be made
Underwriting and
available in the event it becomes impossible to find intermediaries interested
in participating in the deal. This guarantee is undoubtedly beneficial for the
Arranging
borrower but has a cost in the form of a higher arranging fee
International Financial Institution and
Multilateral Banks

PRESENTED BY:

Dr. Amit Hedau,

Asst. Professor, NICMAR
 Types of International
Funding to the Project
There are several sources for funding which the government or other public entities may deal with.
The first one can be termed as intergovernmental or multilateral financial institutions. These
include the World Bank Group (WBG), International Monetary Fund (IMF) and the African
Development Bank (AfDB). These institutions have strict rules on who to lend to and what project to
finance. Of these three institutions, the AfDB is the most liberal one in terms of having relaxed terms
and conditions. In the past years, Botswana benefited from loans from both the Word Bank and the
African Development Bank.

The second source is bilateral aid. Bilateral aid is assistance given by a government directly to the
government of another country. It is usually the largest share of a country’s total aid and is often
influenced by strategic geo-political purposes as well as humanitarian ones. For purposes hereof,
nothing further need to be said about this source.
 Multilateral Institution
Division – Govt. of India

https://dea.gov.in/multilateral-institutions-divisions
The world bank consists of
1.The International Bank of Reconstruction and Development (IBRD)
2.The International Development Association (IDA)
3.International Finance Corporation (IFC)
4.Multilateral Investment Guarantee Agency (MIGA)
5.International Centre for Settlement of Investment Disputes (ICSID)
The International Bank for Reconstruction and Development
Current IBRD Eligibility Criteria: Middle and some creditworthy Lower Income countries
qualify for IBRD Loans. Countries are classified based on their previous years Gross National
Product into middle income –upper and lower, and Lower Income economies. This
classification is done once a year on July 1st. IBRD operate by means of:
1. Direct loans
2. Partial risk guarantees
3. Partial credit guarantees
4. Enclave guarantees (Oil and Gas Project)
International Development Association
Eligibility for IDA Assistance:
IDA assistance is based on the following criteria:
a) The country’s relative poverty defined as the Gross National Income (GNI) per Capita in
the previous year below an established threshold which is updated annually.
b) Lack of creditworthiness to borrow from both commercial sources and IBRD.
Regional Development Banks

Regional development banks are also multilateral financial agencies, but they
operate in a more restricted geographical area than the World Bank. They focus
on one geographical area only (usually a continent), and their share capital is
held by governments of countries in the area concerned.

1. European Investment Bank

2. African Development Bank
3. Islamic Development Bank
4. Asian Development Bank
5. Inter-American Development Bank
Export Credit Guarantee

EXIM Bank
 Innovative Financing –
A Case of Coimbatore Bypass Road Project
 Innovative Financing –
A Case of Coimbatore Bypass Road Project
Contact
Information
PHONE NUMBER
937 310 54 28

EMAIL ADDRESS
ahedau@nicmar.ac.in
 Thank you!
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