Project financing in China
Limited recourse, or non-recourse, project finance transactions require a well co-ordinated and experienced team of banks and consultants.
Nowadays, more and more Chinese commercial banks offer long term investment financing on a non-recourse basis. Both the terms and conditions of such financing as well as the increasing necessity to finance local content can make this an attractive solution for foreign investors. However, developing an appropriate financing structure in China is still a challenge. On the one hand, only a few Chinese financial institutions have the experience that foreign investors are used to finding at foreign banks. In addition, the arrangement of suitable securities has its own characteristics in China. We have advised on a number of long-term project finance transactions, both in relation to cross-border concepts and domestic syndicate structures. Our experience dates back to 1998 and since then we have developed a strong network of associations with relevant institutions including banks.
Milestones include:
- Cross border syndicate financing/power plant (foreign and local loans)
- Provision of project finance by a domestic syndicate for major infrastructure projects
- Real estate and construction financing