Project financing, as an important financing mode, its application field initially focuses on highly monopolized energy projects such as oil and mineral resources, as well as government infrastructure-type public **** projects. I have organized some of the main features of project finance, interested pro can come to read!
The main features of project financingA good financing project packaging, should be through the perfect, scientific preparation, the project returns to show investors, so as to attract investors to put money into the project, for the project to carry out and construction to provide cash flow. Successful financing project packaging, in general, has the following characteristics:
Scientific
Today's countries around the world pay great attention to the comprehensive analysis of the project. In the feasibility analysis of the financial analysis as the basis, the development of a set of economic analysis methods. And for the political, social and ecological environment to give corresponding attention. This is the requirement that in the project packaging, financial accounting, management accounting, technical economics and other natural sciences and social sciences as the basis for scientific proof of the project's economic benefits. At the same time, since project packaging is built on the basis of market forecasting, it is impossible to achieve absolute accuracy in the results of feasibility analysis of the project. However, a good packaging project, the results of its argumentation must achieve a certain degree of accuracy. For this reason, in the project packaging, must adhere to the principle of seeking truth from facts, data and information to be true and reliable, according to the reasoning, fair and objective, the kind of packaging practices that deliberately narrow the investment risk, exaggerated economic benefits, leaving a dispute for the financing, and at the same time, the development of the enterprise is also extremely harmful.
Feasibility
Project packaging should be carefully done to predict market demand, fully examine the project product supply and demand in the international and domestic markets, the feasibility of future sales prospects for enterprise products. Do a good job of the project's technical feasibility analysis, to the economic benefits as the core, using dynamic and static two analysis methods, put forward the investment project feasible program. In the feasibility study of the project, the data calculation methods and conclusions of some basic data and the main indicators of economic evaluation, such as the amount of investment, costs and expenses, production volume, sales income, profits and taxes, rate of return, economic net present value, net investment benefit rate and other data are not accurate. In order to achieve the purpose of attracting capital, we cannot deliberately underestimate the cost and expense, overestimate the profit, which is unrealistic and reduces the credibility of the project. Changes in the political and legal environment and other factors, the impact of the economic evaluation indicators and the project's risk should be reasonably predicted and projected, the dynamic economic indicators and the project's break-even analysis, sensitivity analysis, etc. should have a sufficient scientific basis. To equipment selection, construction scale, development direction and other programs to carry out multi-program comparison. In the project feasibility report, to minimize the subjective description, more objective economic analysis; to ensure the correctness, reasonableness and reliability of the data, the conclusion should be clear and concise. In-depth investigation of the market, accurately analyze the competitors, competitiveness, production level and operating characteristics of similar enterprises. The project in the technology, market, economic problems and the implementation of the process of product quality assurance, the ability to digest the technology and other possible difficulties as well as should pay attention to and prevent the problem should be fully estimated, can not intentionally conceal the possible difficulties as well as should pay attention to and prevent the problem should be fully estimated, can not intentionally conceal the possible risks.
Normality
The procedure, content, language and format of the project packaging should be in line with international practice. To this end, one should combine quantitative analysis and qualitative analysis, all economic elements that can be quantified should be quantitative analysis and calculation, the economic value of the relevant process technology programs, engineering programs, environmental programs, etc. expressed in quantitative terms. Secondly, the language should be standardized. Language and writing is an important factor affecting the communication of information in the project packaging, to avoid the occurrence of trouble caused by improper language processing. To pay attention to standardize the language, accurately reflect and express the true status of the project. Third, the format should be in line with the requirements of the particular project. Some of the world's major international financial organizations, such as the World Bank and other project packaging as a necessary condition for applying for loans, international projects of different kinds basically formed a fixed format, for this reason, the project packaging should be strictly in accordance with the requirements of the relevant format.
Attractiveness
The attractiveness of the project directly determines the effect of financing, for this reason, the advantages and potential of the project should be fully explored in the comparative analysis of multiple factors to demonstrate the feasibility of the project; the macro and micro combined with the content of the project, technology, economics and other aspects of the depth of the analysis and definition; in accordance with the overall structure of the project and the idea of an all-round planning. Innovation throughout the project packaging. Project packaging should have a high intention, the overall planning should be full of new ideas, accurately grasp the pulse of the times, and the needs of the international market and the latest developments as far as possible to keep pace. Project packaging for investors concerned about the key issues to be discussed in depth, packaging projects in the content of a clear hierarchy, focused, in-depth analysis of the relevant market, set off the characteristics and advantages of the project. Project packaging should be combined with the special advantages of the local and the enterprise, focusing on the overall full excavation and in-depth analysis of the local and the enterprise's own resource advantages, revealing the uniqueness of the project, such as how to build on the project's strengths and avoid shortcomings, to enhance the strength of the regional economy, and the rational use of regional resources, as well as how to dovetail with the enterprise development planning and other issues for an in-depth and compact analysis, using the external advantages of the rendering of the project's own uniqueness. Packaging form to avoid too simple, packaging format, calculation methods and standards as far as possible with international practice, to make good use of maps, orientation maps, detailed maps and other charts, image and vividly reflect and express the essential features of the project. The expression of some professional names should be standardized as much as possible to avoid causing misunderstanding among investors.
Outstanding financing project manual
A financing project packaging to achieve success, must have an excellent financing project manual. At present, China's existing financing project packaging practice, the project manual expression is too patterned, one size fits all. Financing project packaging is the first to make the project attractive, to allow investors to see the investment prospects, recognize that there is a good environment suitable for investment, especially on the investment risk argument. Therefore, must stand in the investor's point of view to prepare the project description.
Must highlight the characteristics of the project. A lot of very distinctive project in the project description does not reflect the characteristics, and the lack of uniqueness of the project description is difficult to attract the attention of investors, so that the most prominent ? The amount of investment? and? Payback period? The specifics of the financing will be hard in the eyes of the investors.
For the need for creative tourism, culture and sports, light industry, environmental protection projects must contribute to the excellent creative and packaging. These are the financing spirit and culture within the project, it can be said that the need is inspired creativity, the need for financing before making more detailed preparation. SMEs can refer to the following points in the preparation of the project description:
1. The project description emphasizes the highlights and characteristics of the project, please professionals to assist in writing better, do not mode.
2. Project description to have a strong sense of market and recovery guarantee.
3. Do not generalize the investment environment, it is best to address the project itself and the investment environment.
4. You can put forward some intentional projects, such as: the secondary development of the product, the upgrading of technology, the provision of overseas markets, the use of the brand, industrial design, etc., but also intangible assets and intellectual property rights as a transaction of the project.
5. In addition to text, pictures, objects, and sound and light technology can be used in the display, but should not be too luxurious and complex.
6. Some of the commodities wishing to export, such as: resources, raw materials, local specialties, daily necessities, etc., in addition to enterprises to seek overseas markets and overseas merchants, should also be commissioned on-site foreign trade enterprises to provide professional services, and provide product specifications for international standards. In addition enterprises even if commissioned by the foreign trade company, their own exhibition, because the scene of the contact is necessary.
The main features of project financing
1. The exclusivity of the main body of financing.
Project financing mainly relies on the project's own future cash flow and the formation of assets, rather than relying on the creditworthiness of the project's investors or sponsors and assets other than the project itself to arrange financing. The exclusivity of the financing subject determines that the creditor is concerned with how much of the project's future cash flow can be used for repayment, and the amount of its financing, cost structure, etc. are closely related to the project's future cash flow and asset value.
2. The limited nature of the recourse.
Traditional financing methods, such as loans, creditors are concerned about the investment prospects of the project at the same time, more concerned about the creditworthiness of the project borrower and the reality of the assets, recourse is complete; while the project financing methods, as mentioned above, is the project on the project, the creditor, in addition to the contracting party and the contracting party has a special agreement, can not be recourse to the project itself other than any form of assets, that is to say, the project financing is entirely dependent on the project's future economic strength. The future economic strength of the project.
Participants in project financeBecause of the complex structure of project finance, there are more interested parties involved in financing than in traditional financing methods. In summary, they include the following: the project company, project investors, banks and other financial institutions, buyers of project products, project contracting companies, material suppliers, financing consultants, project management companies and so on.
The project company is directly involved in the construction and management of the project, and bear the debt liability of the legal entity. It is also the core of organizing and coordinating the entire project development and construction. Project investors own all or part of the equity of the project company, in addition to providing part of the equity funds, but also in the form of direct or indirect guarantee for the project company to provide certain credit support. Financial institutions (including banks, leasing companies, export credit agencies, etc.) are the main providers of project finance funding sources, which can be one or two banks, or a syndicate of a dozen banks.
Many of the tasks in the project financing process need to be done by people with specialized skills, and most project investors do not have the experience and resources to do so, and need to hire professional financing consultants. Financing consultants play an important role in project financing, to a certain extent, affect the success or failure of project financing. Financing consultants are usually investment banks, finance companies or commercial banks to serve as the financing department.
The buyers of project products play an important role in project financing. The project's product sales are generally realized through a long-term sales agreement signed in advance with the buyer. The future stable cash flow formed by this long-term sales agreement constitutes the credit basis for bank financing. In particular, the development of resource projects is affected by changes in international market demand, price fluctuations, whether to sign a stable, long-term sales agreement in line with the requirements of the lending bank often becomes the key to the successful implementation of project financing. For example, the Argyle diamond project developed by Australia's Ashton Mining Company wanted to raise funds by means of project financing. Due to the banks involved in financing that the market price of diamonds and the sale of risk, the financing work is difficult to complete, but when the company signed a long-term underwriting agreement with a reputable diamond seller in London, Ashton Mining Company will soon get the bank's loan.