PROJECT FINANCE LEGAL SERVICE IN BANGLADESH
Project Finance is a term that is mostly used in the private sector of the economy. Investment firms and financial institutions provides forcontingent equity, hedges and a variety of limited guarantees through a newly organized company,mobilization of debt, equity, applicable to partnership or JV companiesin order to buildlarge or medium scale projects.
There are two main forms of corporate lending:
· Full faith and credit of corporate balance sheet
· Project finance loan
Financial institutions e.g. banks and other capital investment entities, provide project loan to set up long term infrastructure and industrial projects. Project finance is now a key of acquiring capital and the same is the case for financial institutions as they find this mode of channeling their funds lucrative. Many of the Bangladeshi entrepreneurs in order to successfully complete several large scale dream projects have resorted to project finance.
Project financing can be done via a single bank or through loan syndication. Before allowing project finance, the key aspect that banks look into is ‘the cash flow generating capacity of the project’ along with strong operational and financial track record.
FM Associates acts for a number of high profile clients who are operating in Bangladesh in order to run specific projects such as power-projects, roads and highways etc. They often require to obtain finance from several financial institutions and it is our lawyers who assist them in preparing the necessary documents and also advise them in relation to the legal issues that may arise from such transactions. When requested by clients, FM Associates also assists them by providing them with lawyers who carry out the negotiation with the financial on behalf of the clients.