9.2.3  Project bond structure - multi source financing

Many large project financing transactions include both commercial bank facilities and project bond financing. This multi-source approach may be used for a variety of reasons, including the diversification of financing sources, the use of bank financing as a temporary bridge while awaiting optimal capital market financing conditions and the need for revolving working capital finance, which realistically can only be provided by banks.

If the PPP Project is to be financed by a mixture of bond and bank finance, the structure is likely to resemble the following:

PROJECT BOND STRUCTURE - MULTI SOURCE