Information
What is the product intended for?
- The Specialized Financing and Institutional Clients Department of DSK Bank is the first intentionally created organizational unit for specialized financing in Bulgaria.
- The Department works in close cooperation with all units for specialized financing of OTP Group, which allows fast and efficient structuring of syndicated transactions, whenever necessary, as well as providing direct contact to clients of DSK Bank who have projects in other countries where OTP Group is present.
- DSK Bank is focused on large-scale projects in the field of construction of shopping malls, tourism industry, energy, telecommunications, infrastructure, residential and office space construction, construction of logistics centers and others.
- 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.
Key product parameters:
- 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.
- 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 customer data:
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.