We study capital structure negotiation and cost of debt financing between sponsors and lenders using a sample of more than 1,000 project finance loans worth around US $195 billion closed between 1998 and 2003. We find that lenders: (i) rely on the network of non-financial contracts as a...

In project finance, sponsors and lenders set up a special purpose vehicle (SPV) that receives limited or no-recourse lending for the design, construction and management of a specific project with limited economic life. A network of nonfinancial contracts (NFCs) is set up in order to limit the...

We examine certification by lead arrangers of project finance (PF) syndicated loans, because PF vehicle companies are stand-alone entities, created for a single purpose, with all valuation impacts contained in the project financing package. Using a sample of 4,122 project finance loans, worth...

We examine certification by lead arrangers of project finance (PF) syndicated loans, because PF vehicle companies are stand-alone entities, created for a single purpose, with all valuation impacts contained in the project financing package. Using a sample of 4,122 project finance loans, worth...

We study capital structure negotiation and cost of debt financing between sponsors and lenders using a sample of more than 1,000 project finance loans worth around US$195 billion closed between 1998 and 2003. We find that lenders: (i) rely on the network of nonfinancial contracts as a mechanism...