Project Finance

HSBC has a long and successful track record in Project Finance transactions globally, across a broad range of industries, eg power, oil and gas, and infrastructure, which has been recognised through the winning of many industry awards.

Project Finance can be defined as the funding of a single major capital investment with repayment either largely or exclusively coming from cash flows generated from the project following construction completion, when the asset to be funded becomes operational and starts to generate revenues. The project can include income producing assets or contractual rights. Lending is predicated primarily on the cash flows and intrinsic worth of the project assets and contractual rights, rather than on corporate risk or other credit external to the project.

Through a team of professionals in strategic locations globally HSBC's Project Finance team undertakes both Project Finance Advisory and Project Finance Debt Arranging services.

Project Finance Advisory work encompasses the provision of advice on the whole structure of a project financing, including (but not limited to) bid strategy, provision of equity, advantages of different types of debt, hedging techniques, contractual structuring, financial modelling, macroeconomic assumptions, intra-shareholder issues, and project management issues.

Project Debt Arranging is the structuring, organisation and provision of a package of financing instruments to finance a project and can include the provision of underwriting, medium-term financing, and derivatives products.