Project financing structure
There are various routes to financing your wind power project through banks and other financial institutions in India. Your options include:
1. Full recourse (Corporate guarantees/cash collateral)
Financing basis
- Your creditworthiness
- Full recourse
- Balance sheet and share price/valuation implications
Highlights
- Interest rate depends on your creditworthiness
- Standard documentation
- Usual credit assessment
2. Limited/non-recourse financing
Financing basis
- Cash flow of the project
- Non / limited recourse to sponsor
- Interest rate depends on project risk
- Low risk profile and stable cash flows
- Comprehensive documentation
- Structuring effort/cost/time
- Project, regulatory and technical risk assessment by independent consultants