A guide to Practical Law Finance's project finance resources

A guide to Practical Law Finance's project finance resources.

This note acts as a guide to Practical Law Finance's resources on the debt financing of infrastructure projects, including private and public sector projects carried out under the private finance initiative or as public private partnerships. As well as links to those Practical Law Finance standard documents, drafting notes, practice notes and checklists that are relevant to project finance, this note includes links to project finance resources from other Practical Law services such as Construction, Public Sector, Environment and Tax.

Contents

Introduction

This note acts as a guide to Practical Law Finance's resources on the debt financing of infrastructure projects, for example:

  • The building of a tunnel, bridge or motorway.

  • The development of an oil or gas project for the exploitation of oil and gas deposits.

  • The building of a power station.

  • The development of telecommunication and cable networks.

 

Project finance overview

For an introduction to project finance, including an outline of a typical project finance structure, an overview of the parties to the project and their objectives and the key issues for lenders, see Practice note, Project finance: UK law overview (www.practicallaw.com/0-202-3293).

 

Project finance structures

Structure of a project finance transaction

For an outline of the contractual structure of a project finance transaction, see Practice note, Project finance: UK law overview: Contractual framework (www.practicallaw.com/0-202-3293).

Structure of a construction or engineering project

For a quick guide to the legal aspects of a construction or engineering project, see Practice note, Construction projects: the legal structure: a quick guide (www.practicallaw.com/1-384-4092).

For information on the roles and responsibilities of a project monitor (sometimes, also known as a technical adviser), including the advantages to a funder and the project if a project monitor is appointed, see Practice note, Project monitoring (www.practicallaw.com/7-382-5255).

Construction contracts

For a note on common issues to consider when negotiating construction sub-contracts (that is, the principle construction, development, operation and supply agreements) in the context of public sector projects, see Practice note, Construction sub-contracts in PFI and PPP projects: common issues (www.practicallaw.com/4-502-9195).

 

Public sector projects

Public procurement

PPP and PFI projects

 

Financing projects using debt finance

General

For a guide to Practical Law Finance's resources on lending, see Practice note, A guide to Practical Law Finance's lending resources (www.practicallaw.com/7-500-3009).

Bank loans

Debt securities

 

Risks in project finance transactions

For a note on identifying and managing the typical risks of a project finance transaction, including construction risk, operational risk, offtake risk and political risk, see Practice note, Identifying and managing project finance risks: overview (UK) (www.practicallaw.com/5-564-5045).

See also Insurance in project finance transactions.

 

Security in project finance transactions

General

For an introduction to taking security in project finance transactions, see Practice note, Project finance: UK law overview: Security (www.practicallaw.com/0-202-3293).

For an introduction to the function of security trusts (www.practicallaw.com/1-107-7234) and the role of security trustees in finance transactions (including project finance), see Practice note, Security trusts in finance transactions: overview (www.practicallaw.com/7-519-6017).

For an overview of Practical Law Finance's resources on security and quasi security arrangements, see Practice note, A guide to Practical Law Finance's security and quasi security resources (www.practicallaw.com/1-386-3269).

Security over assets

Forms of security that can be taken over assets

For an outline of the options available to lenders when taking security, see Practice note, Taking security (www.practicallaw.com/2-107-4032).

For an introduction to taking security over contractual rights, such as those under project agreements, see Practice note, Taking security over choses in action (www.practicallaw.com/4-201-9675).

Perfection and priority of security

For an introduction to the different methods of perfecting security, the basic rules governing priority and contractual ways in which the rules can be varied, see Practice note, Perfection and priority of security (www.practicallaw.com/6-107-5015).

Enforcing security

For an overview of how a lender (or other chargeholder) may enforce security over the assets of a corporate security provider, see Practice note, Enforcing security: overview (www.practicallaw.com/6-385-5568).

Guarantees and indemnities

For a note covering legal and drafting issues relating to corporate guarantees and indemnities, see Practice note, Guarantees and indemnities (www.practicallaw.com/9-200-1437).

Construction security

For a quick guide to collateral warranties (www.practicallaw.com/1-107-5937) from contractors and other professionals and third party rights (including step-in rights (www.practicallaw.com/8-107-7320)) as a form of "construction security", see Practice note, Collateral warranties and third party rights on construction projects: a quick guide (www.practicallaw.com/4-502-4310).

Performance guarantees, bonds and letters of credit

Cross-border security

 

Intercreditor arrangements

For an explanation of the nature and purpose of an intercreditor deed, see Practice note, Intercreditor deeds: overview (www.practicallaw.com/5-107-4035).

 

Subordination arrangements

For a note which examines the legal background and case law relating to subordination (www.practicallaw.com/3-107-7332) of debt and which analyses different methods used to alter the priority of debts, see Practice note, Subordination (www.practicallaw.com/7-242-0147).

 

Legal opinions in project finance transactions

For an overview of the matters to be considered when requesting or responding to a request for an English legal opinion in a finance transaction, see Practice note, Legal opinions in finance transactions: overview (www.practicallaw.com/6-201-7053).

 

Execution of project finance documents

 

Insolvency

The potential implications of insolvency law should be recognised when advising on project finance transactions. The following resources provide an overview of various insolvency procedures.

General

For an overview of Practical Law Finance's resources on restructuring and insolvency, see Practice note, A guide to Practical Law Finance's restructuring and insolvency resources (www.practicallaw.com/4-500-4656).

Insolvency procedures

For an introduction to the aims of and background to corporate insolvency law, together with a brief overview of the various insolvency procedures available, see Practice note, Corporate insolvency: a guide (www.practicallaw.com/8-107-3973).

Restructuring

For a note that looks at the key stages involved in restructuring (www.practicallaw.com/1-384-6171) corporate debt, see Practice note, Corporate debt restructuring: step by step (www.practicallaw.com/7-201-5534).

Cross-border restructuring and insolvency

 

Sharia compliant project finance

For an introduction to the basic principles of Islamic law (or Sharia) that affect finance transactions, including project finance, see Practice note, Islamic finance: UK law overview (www.practicallaw.com/3-366-1996).

For information on Sharia compliant financing of commercial real estate, including certain project finance structures, see Practice note, Sharia compliant financing of commercial real estate (www.practicallaw.com/1-525-4779).

 

Tax in project finance transactions

The general tax principles that arise in a project finance transaction are the same as for other commercial loan transactions. The following resources provide an overview of various tax issues commonly encountered in finance transactions.

Tax issues for finance lawyers

For a summary of the tax issues that frequently arise in respect of commercial lending transactions, see Practice note, Tax for banking lawyers (www.practicallaw.com/8-201-9942).

Tax issues in capital markets transactions

For a summary of the UK tax issues that arise in typical capital markets transactions, see Practice note, Bond issues: tax (www.practicallaw.com/9-202-2637).

Withholding tax

For a summary of the UK withholding tax (www.practicallaw.com/8-107-7508) rules on payments of interest and certain other payments, see Practice note, Withholding tax (www.practicallaw.com/5-201-9175).

VAT issues for banks

For a summary of the various VAT issues that arise for banks in the course of their business, see Practice note, VAT issues for banks (www.practicallaw.com/6-201-9919).

Multi-jurisdictional guide on taxes

For a multi-jurisdictional guide to taxes on corporate transactions and finance transactions, see Practical Law Cross-border, Tax on Transactions.

 

Social, ethical and environmental issues in project finance

 

Insurance in project finance transactions

For an overview on insurance and mitigating specific risks in project finance transactions, see Practice note, Project finance: UK law overview: Insurance (www.practicallaw.com/0-202-3293).

General insurance

Construction and projects

For a note which outlines the types of insurance relevant to construction and engineering projects and gives guidance on dealing with insurers, see Practice note, Insurance in construction and engineering projects (www.practicallaw.com/3-383-2074).

Environmental insurance

For a note on the different types of insurance available to mitigate environmental risk, see Practice note, Environmental insurance (www.practicallaw.com/3-386-3353).

 

Links to Practical Law resources on project finance

Practical Law Finance resources on project finance

Links to Practical Law Finance resources on project finance:

Related Practical Law resources

Links to Practical Law services covering key practice areas relevant to project finance transactions:

Project finance in other jurisdictions

Multi-jurisdictional guide

For a multi-jurisdictional guide to construction and projects, see Practical Law Cross-border, Construction and Projects.

United States

For project financing resources from a United States perspective, see Practical Law US Finance.


Useful links

Practical Law search function

To conduct a search of all Practical Law materials, use the toolbar at the top of the Practical Law homepage. The Practical Law search function applies a faceted search, which means that you can tailor your search by filtering by topics, services, jurisdictions and/or resource types. For more information on searching, see How to search Practical Law resources (www.practicallaw.com/3-517-4630).

Feedback

To send us any comments or questions, click here.


{ "siteName" : "PLC", "objType" : "PLC_Doc_C", "objID" : "1247243154223", "objName" : "A guide to Practical Law Finances project finance resources", "userID" : "2", "objUrl" : "http://us.practicallaw.com/cs/Satellite/us/resource/7-386-0036?source=relatedcontent", "pageType" : "Resource", "academicUserID" : "", "contentAccessed" : "true", "analyticsPermCookie" : "2-55913920:1476ab01ea2:-3ea8", "analyticsSessionCookie" : "2-55913920:1476ab01ea2:-3ea7", "statisticSensorPath" : "http://analytics.practicallaw.com/sensor/statistic" }