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Emeka C. Chinwuba Authors “General Debt Financing Versus Project Financing” in Partnership With The African Legal Support Facility

Date: 04/05/23

In a practice note written in partnership with the African Legal Support Facility (ALSF), partner Emeka Chinwuba compares general debt financing to project financing structures, highlighting some of the fundamental components of the two similar but distinct types of financing. This note additionally addresses some of the key distinctions in loan structuring and documentation where the borrower is a sovereign.

Regardless of whether a borrower is a business or a sovereign, there are various forms of debt a borrower may incur depending on the desired use of the debt proceeds, the financing structure it seeks to adopt and the level of efficiency it seeks to achieve relative to the debt structure adopted. While project financing has, in some respects, several similarities to general debt financing, it is a separate and unique product that is specifically designed to facilitate the financing of a variety of revenue generating projects.

General Debt Financing vs. Project Financing_ALSF_April 2023.pdf (pdf | 1.73 MB )