Larger facilities require more than a good headline rate. Structure, security, covenants, drawdown conditions and total cost determine whether financing supports the project.
Corporate term facilities fund expansion, acquisitions and capital expenditure. Project finance is structured around a specific asset or development, with staged drawdowns tied to milestones and repayment linked to project cash flow.
Where one bank cannot comfortably hold the full exposure, syndicated or club facilities let several lenders share the amount under coordinated terms.
Banks model DSCR across the full tenure, review audited group accounts, gearing, contracts or offtake agreements, collateral, project feasibility and directors' or group CCRIS/CTOS records.
Large facilities usually include financial covenants, reporting duties, drawdown conditions and restrictions on further debt. These terms can matter as much as pricing.
Refinancing may reduce blended cost, extend tenure, consolidate facilities or release collateral. Compare interest, fees, early-settlement cost, covenant flexibility and security—not only the advertised rate.
Banks commonly require a margin above 1.25x; project finance often targets around 1.4x to 1.5x or more because of completion and ramp-up risk.
A lead bank arranges a large facility and shares exposure with other lenders, allowing the borrower to raise more than one bank may hold alone.
Expect two to three years of audited group accounts, management accounts, cash-flow projections, group structure, board approvals, contracts, feasibility studies and valuations.
