SID Bank - Insurance - Export credit insurance - Project Financing Insurance

Project Financing Insurance

Project financing is undoubtedly the most complex service of insuring and financing of (export) projects. It represents a special non-conventional form of financing of long-term projects, where creditors and insurers in their decisions mainly rely on the planned future income of the project company (the newly founded company) as the principal resource for the servicing of granted loans and the property of the project company as the main form of insurance (collateral).

The policy is based on risk sharing among the participants in the project (non-commercial as well as commercial under certain conditions), following the principle that a certain risk is assumed by the participant best equipped for its managing, or most capable of influencing it. The minimum of 30% of the project value has to be provided by the project sponsors, while SID Bank provides up to 40% with its support, and the remainder minimum 30% is provided by commercial banks experienced in the area of project financing. Combinations with other financing sources are also possible.

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