By the term project financing understands itself the financing of one economically and mostly legally definable, refinancing restaurant unit about limited life span. The project financing forms thereby the counter project to the so-called Corporate credit rating based financing. The financing funds are therefore applied neither in the classical form of the order financing directed toward the soil quality of the orderer still in form of a project-related and directly involved financing aiming at the soil quality of the sponsors, but as a function of expected project economy sui generis made available.

Typically a project financing possesses those in the following described characteristics:

1. Cash-flow-oriented granting of credit (cash flow related lending), 2. Explicit risk division (Risk sharing) und3. Balance-external financing (off balance sheet financing).

Cash-flow-oriented granting of credit (cash flow related lending)

From the high specificity of project-financed projects regularly a disproportionately low follows in the comparison to the height of the initial costs. For example it is to be accepted that in the case of the abnormal termination structurally of an infrastructure project already finished only very small remainder proceeds from the sales of the single articles of tangible assets are to be expected. With project financings the project active and their potenziellen smashing values are not therefore the center of the granting of credit decision as security for the repayment of the granted credits, but the outside capital givers orient themselves primarily at the debt service ability the cash-flow expected for the future. Contrary to the traditional balance sheet related lending and/or eat based financing therefore the balanced fortune of the project company plays only a subordinated role. A substantial risk for the credit givers in a project financing represents the completion risk (Completion Risk), because the project can generate a positive cash-flow only if it is finished placed and thus its intended tasks fulfills.

Explicit risk division (Risk sharing)

The Risk sharing describes the allocation of the project risks between the different project-taken part. According to the general efficiency principle of the Risikoallokation the individual project risks should be assigned if possible the involved one, which can handle these best due to their singlerisk-referred know-how. The project financing tries to convert this realization, by the risks the respective carrier of the achievement in direct connection with a project achievement answered for and phasereferred the remaining refinancing risks the own and outside capital givers as well as third are assigned. As a function of the project-specific risk situation and the prepared to take risks shank of the Finanziers can be equipped the prospektiv aligned cash flow related lending with additional rights to take recourse (Recourse) the credit giver opposite the own capital funds givers. Can be differentiated the three stages Non recourse, Limited recourse and Full recourse financing. While in practice to a large extent uncommon limits Non recourse financing the resort of the credit givers to the own capital funds insert of the agencies responsible for the project, for project financings the typical describes Limited recourse financing in, temporally according to amount or for situation-entrance-conditioned regard adhesion of the nut/mother enterprises limited beyond their partner insert. Extremal development Full recourse financing breaks through the project financing principle of the risk division due to the full resort to the own capital funds givers and is therefore not the project financing in the actual sense, but the traditional to assign on the soil quality of the nut/mother enterprises turning off Corporate credit rating based financing. In the course of the explicit Risikoallokation own capital funds ratios can be reached, which are to be classified particularly for anglo American conditions as unusually small. The singleinterest-spreading main objective Risk sharing exists in the establishment of a financing structure, which it the project-taken part made possible to be with entrance of project-inherent risks to an immediate abort of the overall project forced.

Balance-external financing (off balance sheet financing)

The establishment of the project company can lead with suitable choice of the participation quotas and say to the fact that with the sponsors in accordance with the accounting regulations relevant for it only the respective portion of own capital funds of the society is to be balanced. Since all project credits designated with this as Equity method kind of the capital consolidation exclusively in the single balance of the project company are proven, occurring degradation of the passive-lateral vertical balance structure is void for the sponsors in the course of the full or ratio consolidation due to in particular the debt ratios of project companies, disproportionately high compared with US-American Going concern enterprises. Since the participation in a project company is to be only proven RK-Equity in the fixed assets, additionally the horizontal as well as the active-laterally vertical balance relations are preserved. However this so-called off balance sheet effect can be waived due to passivation-requiring contingent liabilities from that Limited recourse of the sponsors. In the context Limited recourse financing developing adhesion conditions are besides in principle in the appendix to be noted. The term off balance sheet financing is to be translated therefore not into its literal absoluteness to interpret but as phenomenon of particularly small effects of a own capital funds commitment on the balance of the project sponsor.

In the result it is to be noted therefore that excluding the characteristic of the financing of one economically and mostly legally definable, itself refinancing restaurant unit of limited life span, which cash flow related lending as well as as constituent characteristics of the project financing is to be regarded the Risk sharing. Off balance sheet financing possesses an only differentiating character.

Literature

Beckmann, D.: Controlling of operator-model-based infrastructure projects: A conception from agency responsible for the project view, Aachen (Shaker), ISBN 3-8322-1203-5, 2003

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