EXIM Bank’s limited recourse project finance is an arrangement in which EXIM lends to newly created project companies and looks to the project’s future cash flows as our source of repayment instead of relying directly on foreign governments, financial institutions or established corporations for repayment of the debt.
This financing arrangement is especially appropriate where hard currency revenues can be captured offshore or long-term off-take contracts insure project cash flows. EXIM will work with project developers or equity participants to develop a structure that can be sustained throughout the project’s operations.
EXIM is also looking at other innovative structures such as risk sharing with suppliers and reinsurance in order to facilitate transactions in important industry sectors that may not meet these criteria.