Main parameters of the specialized financing offered by DSK Bank
Specialized financing deals cover a wide range of large-scale transactions concerning project financing, acquisitions, public-private partnerships. Most common (but not limited to) sectors for Specialized financing are energy, infrastructure, telecommunications, real estate.
Specialized financing is a specific type of lending, in which the borrower is the so-called. project company (SPV) or existing company, where the project can be separated both in accounting and in view of the collateral structure for the loan.
Repayment of specialized loans relies mainly on the cash flows generated from the project, and the project assets serve as collateral for the loan. At the same time, the parent company supports the project financially by providing the necessary self participation and guaranteeing potential contingency cost. Depending on the specific risks of the investment, there are both transactions in which the parent company does not provide guarantees for the debt service (non-recourse) and transactions in which the parent company is required to guarantee the regular debt service of the loan.
Required data from the client
In order to perform a financial evaluation of the specialized financing, DSK Bank requires the following initial information regarding the project, the project sponsors and the borrower.
- Detailed business plan of the project
- Legal and company documentation of the borrower and the sponsor
- Data for the financial state of the project sponsors
- Market research, financial estimates, as well as a feasibility study of the project
- Contracts related to the project that have been signed or are planned to be signed
- Other relevant information about the project.