The Law and Business of International Project Finance Book contents
- Frontmatter
- Contents
- Preface to the Third Edition
- Preface to the Second Edition
- Preface to the First Edition
- PART ONE AN INTRODUCTION TO PROJECT FINANCE
- PART TWO RISK IDENTIFICATION, ALLOCATION, AND MITIGATION
- PART THREE PROJECT FINANCE STRUCTURES
- PART FOUR TECHNICAL, POLITICAL, AND ECONOMIC FEASIBILITY
- PART FIVE PROJECT FINANCE DOCUMENTATION
- PART SIX CREDIT ENHANCEMENT
- PART SEVEN DEBT AND EQUITY FINANCING
- CHAPTER TWENTY-ONE FINANCING SOURCES FOR THE PROJECT
- CHAPTER TWENTY-TWO THE OFFERING MEMORANDUM
- CHAPTER TWENTY-THREE PROJECT FINANCE DEBT COMMITMENT LETTERS
- CHAPTER TWENTY-FOUR CREDIT AND RELATED DOCUMENTATION FOR PROJECT FINANCE TRANSACTIONS
- CHAPTER TWENTY-FIVE EXPORT CREDITS DOCUMENTATION FOR PROJECT FINANCE TRANSACTIONS
- PART EIGHT COLLATERAL
- PART NINE PROJECT SPONSOR AND INVESTOR AGREEMENTS
- PART TEN SPECIAL TOPICS IN PROJECT FINANCE
- Appendix A A Checklist of Due Diligence Considerations for a Project Financing
- Appendix B UNCITRAL Legislative Guide on Privately Financed Infrastructure Projects
- Project Finance Terms, Abbreviations, and Acronyms
- Select Bibliography
- Index
CHAPTER TWENTY-TWO - THE OFFERING MEMORANDUM
from PART SEVEN - DEBT AND EQUITY FINANCING
Published online by Cambridge University Press: 05 June 2012
- Frontmatter
- Contents
- Preface to the Third Edition
- Preface to the Second Edition
- Preface to the First Edition
- PART ONE AN INTRODUCTION TO PROJECT FINANCE
- PART TWO RISK IDENTIFICATION, ALLOCATION, AND MITIGATION
- PART THREE PROJECT FINANCE STRUCTURES
- PART FOUR TECHNICAL, POLITICAL, AND ECONOMIC FEASIBILITY
- PART FIVE PROJECT FINANCE DOCUMENTATION
- PART SIX CREDIT ENHANCEMENT
- PART SEVEN DEBT AND EQUITY FINANCING
- CHAPTER TWENTY-ONE FINANCING SOURCES FOR THE PROJECT
- CHAPTER TWENTY-TWO THE OFFERING MEMORANDUM
- CHAPTER TWENTY-THREE PROJECT FINANCE DEBT COMMITMENT LETTERS
- CHAPTER TWENTY-FOUR CREDIT AND RELATED DOCUMENTATION FOR PROJECT FINANCE TRANSACTIONS
- CHAPTER TWENTY-FIVE EXPORT CREDITS DOCUMENTATION FOR PROJECT FINANCE TRANSACTIONS
- PART EIGHT COLLATERAL
- PART NINE PROJECT SPONSOR AND INVESTOR AGREEMENTS
- PART TEN SPECIAL TOPICS IN PROJECT FINANCE
- Appendix A A Checklist of Due Diligence Considerations for a Project Financing
- Appendix B UNCITRAL Legislative Guide on Privately Financed Infrastructure Projects
- Project Finance Terms, Abbreviations, and Acronyms
- Select Bibliography
- Index
Summary
PURPOSE
As a first step in seeking commitments for project debt from financial institutions, the project sponsors prepare an offering memorandum. The memorandum explains the project to potential lenders. It includes the following general topics: experience of the project sponsors; the identity and experience of the major project participants, including the contractor, operator, suppliers, and off-take purchasers; information on the host government; summaries of the project contracts; project risks and how the risks are addressed; proposed financing terms; the construction budget; financial projections; and financial information about the project sponsors and other project participants.
KEY PROVISIONS
This chapter sets forth a discussion of each of the major provisions of a debt offering memorandum used commonly in international project finance transactions.
An offering memorandum is sometimes used to raise equity for investment in the project. Such an offering memorandum is nearly identical to a debt-offering memorandum and emphasizes the proposed equity terms.
PROJECT OVERVIEW
A brief description of the proposed project is included first in the memorandum. The overview includes the type of project, background on the host country, the status of development, and other significant information.
- Type
- Chapter
- Information
- The Law and Business of International Project FinanceA Resource for Governments, Sponsors, Lawyers, and Project Participants, pp. 306 - 309Publisher: Cambridge University PressPrint publication year: 2007