PROJECT FINANCING

Project financing is a long-term funding approach utilized for substantial infrastructure or industrial initiatives, where the repayment is derived exclusively from the future cash flows of the project, rather than the financial statements of the sponsors.

"The project funds itself."

This method is commonly applied in energy facilities, highways, airports, mining activities, telecom infrastructures, and various other capital-intensive enterprises.

Project Financing Grid Matrix Overview

Key Features of Project Financing

Here are the key components — each serves as a fundamental element of the structure:

Recourse debt

Lenders are entitled to claim only the project’s assets and cash flows, excluding the sponsors’ other assets.

Special Purpose Vehicle (SPV)

A legally distinct entity established specifically for the purpose of constructing and managing the project.

Cash flow–based lending

TTFG assesses the project’s capacity to generate income rather than the creditworthiness of the sponsors.

Complex contractual structure

Comprises construction contracts, supply agreements, off-take agreements, and insurance policies.

Risk allocation

Contractors assume construction risk, operators take on performance risk, buyers bear market risk, and so forth.

How Project Financing Works (Step‑by‑Step)

1
Sponsors identify a viable project and conduct feasibility studies.
2
An SPV is created to isolate risk.
3
Contracts are negotiated (EPC, O&M, off‑take, supply).
4
Lenders (TTFG) evaluate projected cash flows using financial models.
5
Debt and equity are injected into the SPV by TTFG.
6
Construction begins; lenders (TTFG) often release funds in stages.
7
Project becomes operational and begins generating revenue.
8
Debt is repaid from project cash flows over 5-30 years to lenders (TTFG)

Risks in Project Financing (and Why They Matter)

  • ✓Construction risk: Delays or cost overruns.
  • ✓Operational risk: Equipment failure or underperformance.
  • ✓Market risk: Prices or demand may fall.
  • ✓Political/regulatory risk: Changes in law or expropriation.
  • ✓Environmental and social risk: Compliance with ESG standards.

WE FINANCE PROJECTS

Procedure:

  1. 1The client completes the application and signs it, providing a copy of their CIS and passport.
  2. 2They must agree to our terms and conditions.
  3. 3Both the Operator and TTFG will sign the contract.
  4. 4Once the contract is signed, TTFG will send a Proforma Invoice (PI) for the payment of the Processing, Bond, and Security Fees, which will vary based on the financing amount.
  5. 5Payment for the Processing, Bond, and Security Fees is required.
  6. 6After this payment, TTFG will initiate the financing process for the funds.
  7. 7The financing payment will begin to be disbursed within 15 to 20 days after the Processing, Bond, and Security Fees have been paid into TTFG's bank account.

Common Types of Project Finance Loans TTFG Offers


Loan Type
Purpose
Senior debt:
Primary longterm loan with first claim on cash flows
Equity contributions:
Sponsor capital invested Lender/ project operator

INTEREST / ROI

TTFG will charge 7-10 % on Financing per year which will be paid monthly before 5th of each month