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Steve Mills

Glossary
November 15, 2021

Loan Life Cover Ratio (LLCR)

The ratio of the net present value of CFADS during the remaining loan life to the amount of the loan which is still outstanding at the time the calculation is made. A common ratio for the sculpting of debt and the setting / testing of covenants in minerals-based project transactions, such as…
Steve Mills
Glossary
November 12, 2021

Liquidated Damages (LDs)

A fixed level of damages payable to the project company/SPV– typically by a construction or operation & maintenance contractor – as a result of the contractor failing to meet contractual obligations. In the case of a construction contractor these will typically be Delay LDs and / or Performance LDs. An…
Steve Mills
Glossary
November 11, 2021

Limited-Recourse Loan

In a project financed structure, the Sponsors will not normally be under any obligation to provide further financing support to the SPV once they have injected their base Equity. The Lenders are therefore said to have limited recourse to the balance sheets of the Sponsors. In practice it is common…
Steve Mills
Glossary
November 10, 2021

Know Your Customer (KYC)

Know your customer, alternatively known as know your client or simply KYC, is the process of a business verifying the identity of its clients and assessing their suitability, along with the potential risks of illegal intentions towards the business relationship. The term is also used to refer to the bank…
Steve Mills
Glossary
November 9, 2021

Joint Implementation (JI)

One of three flexibility mechanisms set out in the Kyoto Protocol to help countries with binding greenhouse gas emissions targets (the Annex I countries) meet their treaty obligations.
Steve Mills
Glossary
November 8, 2021

Interest During Construction (IDC)

The interest which is due on project financing loan facilities during the construction period, but which cannot be paid since the Borrower is not generating cash. This interest is generally added to the loan or “capitalised”. IDC is in effect therefore a cost of construction.
Steve Mills
Glossary
November 5, 2021

Intercreditor Agreement

An agreement between / among the main creditors of a project Borrower governing the relationships among those lenders in respect of the borrower’s obligations. Typically such an agreement will contain provisions regarding matters such as: Common terms Order of drawdown Cashflow waterfall Limitation on ability of creditors to vary their…
Steve Mills
Glossary
November 4, 2021

Intercompany Loans

Usually the largest part of the equity funding injected by the Sponsors into the SPV. For the Inter-Company Loans to be treated as Equity by the lenders, they will need to be subordinated to the debt provided by the external lenders.
Steve Mills
News
November 10, 2020

CCC Training opens for business

CCC Training Limited, a new training company which is focussed exclusively on the Energy, Infrastructure and Sustainable Finance market, has opened for business. The CCC Training concept has been designed by Audrey Caulliez-Louis, Ian Cogswell , Steve Mills and Calvin Walker, each of whom are  well known in the international…
Steve Mills