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Project finance glossary

The terms that run a financing

Project finance carries a vocabulary of its own. These are plain-language definitions of the terms behind the obligations a deal has to track, written for developers, funders and advisers. Each one also explains, honestly, where Capital Governance fits.

Conditions precedent (CPs)
The things that must be satisfied before a lender advances funds. CPs vs conditions subsequent, waivers, consents and the longstop date.
Loan covenants
Financial, information and general undertakings, the ratios like DSCR and LLCR, and how covenant compliance is evidenced.
Final investment decision (FID)
The go or no-go moment when sponsors and funders commit the capital to build. FID versus financial close, explained.
The facility agent
The party that administers a syndicated loan for the lenders. What it tracks, and how it differs from the security agent.
ESAP
The environmental and social action plan, the IFC Performance Standards and Equator Principles, and how E&S actions are tracked.
For project finance teams
How a shared obligations register works for developers, funders and facility agents across the life of a financing.

See how the obligations connect.

Capital Governance holds every obligation on a financing, from conditions precedent to reporting, in one shared register. A short walkthrough shows how.

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