Short-term financing used to finance the construction of a project. This financing is typically provided by commercial banks and must be refinanced with permanent financing (new loans or a project bonds) shortly after the project is operational. There are three types of mini perm financing:

Mini perm structures enable commercial banks that cannot offer long term tenors to participate in financings by providing shorter term loans. These loans typically cover the construction phase of a project and a four or five-year period after project completion.

For more information on these issues, see Practice Notes, Project Finance: Overview, Project Finance: Sources of Available Financing and Financial Covenants: Project Finance Transactions.

For more information on financing sources available to repay these loans, see Practice Notes, Sources of Available Project Financing: Term Loan B Facilities and Sources of Available Project Financing: Project Bonds.