Project finance and Ratchet: Difference between pages

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''Term finance.''
1.  ''Loan documentation - pricing - credit risk - credit ratings.''


(PF).
A clause in a loan document which links the pricing of the borrowing to the credit rating of the borrower.


Project finance is a term financing arrangement, usually on a limited recourse basis, under which funds are lent for a specified project against the security of the project cash flows.
Also known as a 'pricing grid'.


The project itself is normally a long-term one, relating to infrastructure, public services or a large industrial undertaking.
 
2.  ''Loan documentation - pricing - ESG - KPIs.''
 
A clause in a loan document which links the pricing of the borrowing to the borrower's performance against ESG performance KPIs.
 
 
:<span style="color:#4B0082">'''''Places for People's (PfP's) £900m ESG-linked RCF'''''</span>
 
:"PfP agreed on three meaningful and stretching environmental and social KPIs aligned with four of the UN Sustainable Development Goals.
 
:These are documented in line with the LMA’s Sustainability-Linked Loan Principles with performance tied to upward and downward margin ratchets."
 
:''ACT Deals of the Year 2022: Overall winner - 4 April 2023.''




== See also ==
== See also ==
* [[Asset finance]]
* [[Clause]]
* [[Corporate finance]]
* [[Credit rating]]
* [[Finance]]
* [[Credit risk]]
* [[Infrastructure]]
* [[Documentation]]
* [[Integrated water and power plant]]
* [[ESG]]
* [[Planning and projects]]
* [[Key performance indicator]] (KPI)
* [[Recourse]]
* [[Loan agreement]]
* [[Solar CSP]]
* [[Loan Market Association]] (LMA)
* [[Solar PV]]
* [[Margin]]
* [[Term debt]]
* [[Revolving credit facility]] (RCF)
* [[Sustainability-Linked Loan Principles]]  (SLLPs)
* [[Sustainable Development Goals]]  (SGDs)


[[Category:The_business_context]]
[[Category:The_business_context]]
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[[Category:Manage_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]
[[Category:Financial_products_and_markets]]

Latest revision as of 11:22, 23 April 2023

1. Loan documentation - pricing - credit risk - credit ratings.

A clause in a loan document which links the pricing of the borrowing to the credit rating of the borrower.

Also known as a 'pricing grid'.


2. Loan documentation - pricing - ESG - KPIs.

A clause in a loan document which links the pricing of the borrowing to the borrower's performance against ESG performance KPIs.


Places for People's (PfP's) £900m ESG-linked RCF
"PfP agreed on three meaningful and stretching environmental and social KPIs aligned with four of the UN Sustainable Development Goals.
These are documented in line with the LMA’s Sustainability-Linked Loan Principles with performance tied to upward and downward margin ratchets."
ACT Deals of the Year 2022: Overall winner - 4 April 2023.


See also