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Senior Debt Financing

Senior Debt Financing forms the largest component of our financing portfolio. It is provided through loans or in the form of subscriptions to debentures, making up 56% of our loan portfolio. It ranks ahead of other debt obligations of the borrower with respect to security and right of payment.

Our senior debt financing is fully secured and has recourse to the project assets in the event of any default. In most cases, senior debt provided by us is substantially collateralized through documents such as pledge of all or part of the sponsors' equity holding in the borrower or an assignment of rights under the various project contracts.

We also provide securitized debt that is collateralized by the cash flow receivables of the project. Our senior debt financing typically bears fixed rate interest with re-pricing mechanisms that usually come into effect after five years to adjust to changes in interest rates. Additionally, senior loans may also be re-priced for changes in the credit quality of the borrower.


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