Page 8 - TERM SHEET - PROJECT FINANCE CONCEPTION - english
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If the borrower does not have the required equity ratio, he can use certain sponsors. These sponsors are freely selectable for the borrower whose sponsorship capital
may originate from individuals or companies.
The borrower can involve the sponsors in the financing success as follows:
01. Option:
If the project has a profitable profitability, then the borrower can finance the capital
repayment plus a success bonus for the sponsor.
02. Option:
The borrower can also service the capital repayment plus a sponsor bonus from the
cash flow of the project.
The borrower is ultimately free to choose which of the two options he wants to use for the sponsor. As far as the amount of the success bonus is concerned, it will be
discussed between the future lender and the borrower at the time when the equity ratio plus the profitability calculation for the project has been made available to the
lender for review.
If the borrower does not use the options for the use of sponsors, and the borrower also does not have the necessary cash equity, there is also another option by
financing / monetizing possible assets that are in the possession of the borrower can be.