Key project parties and their roles

The five main project parties in a typical project finance transaction (see Introduction to project finance) are:

• • the sponsor;
• • the project vehicle (referred to in this guidance note as the “project company”) which is typically the borrower of the project loans;
• • contractors and sub-contractors;
• • suppliers; and
• • off-takers.

This guidance note explains the roles of the five main project parties in a typical project finance transaction.

See Key project parties and their roles.

Key finance parties and their roles

The five main finance parties in a typical project finance transaction (see Introduction to project finance) are:

• • the lenders;
• • hedging counterparties;
• • the arranger;
• • the facility agent; and
• • the security trustee/security agent.

In addition to these parties, there are usually other roles to be played in the financing arrangements and/or on behalf of the finance parties. These include:

• • the account bank; and
• • specialist advisers to the finance parties.

Some of these additional roles can be filled by one or more of the banks or financial institutions already involved in the transaction.

This guidance note explains the roles of the main finance parties in a typical project finance transaction.

See Key finance parties and their roles.