structured financing

The term Project Finance is generally used to identify a pattern of lending under a structure of limited warranties (limited recourse lending), and where resources (debt and equity) provided to finance the project are paid only with the cash flow generated by it.

Usually, the construction and subsequent operation of these projects are based on many different contracts, with which a balanced distribution or risk is achieved among all parties. Among these contracts are those that are specifically designed to mitigate some financial creditor risks.

CAF's Project Financing is aimed at entities seeking financing operations related to the infrastructure sector,and that generally come from concession contracts granted by governments. Likewise, these funds are often used to finance mining projects as well as oil and gas exploitation.

By adopting these types of financing methods, the organizations promoting the project minimize the impact   the project debt would otherwise cause on their financial statements.

Private investors or public entities associated with promoting these types of projects are eligible to apply for this type of financing. Applications may be sent to the Office of the Director of Structured Finance atfinanciamientodeproyectos@caf.com.