Development Financial Institutions (DFIs) like the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) play an important role particularly in the emerging countries in supporting companies and projects whose needs cannot be fully met by the market. DFIs provide a full range of debt, equity and project financing. Although this financing is often advantageous due to its risk profile, tenor and pricing, it comes with a set of conditions designed to facilitate market economy, corporate governance, best industry practices, new technologies, energy efficiency and environmental standards. We have significant experience to support clients in preparing, structuring and negotiating financing with the DFIs.
Project Financing generally consisting of a loan secured against project assets and repaid from project cash flows has the benefit of maximizing leverage while reducing the recourse to the sponsors. Given the complexity and a perceived higher risk profile, this type of financing is generally undertaken only by the EBRD and IFC in Eastern Europe, the Caucasus and Central Asia markets, although commercial banks may be interested in transactions with a high export “off-take’ component. We have the unique experience of successfully completing some of the biggest project finance transactions in this region both with DFI’s and commercial banks.