Category

Glossary

Glossary
August 8, 2022

Boilerplate

In contract law, the term "boilerplate language" or "boilerplate clause" describes the parts of a contract that are considered standard. In negotiations, the phrase “that’s boilerplate” can be used to mean that a clause is simply required and therefore not negotiable, does not need to be negotiated or is not…
Steve Mills
Glossary
August 5, 2022

Bid Bond

A bid bond is issued to the owner of a project (typically the SPV), as part of a supply bidding process, to provide assurance  that the winning bidder will undertake the contract under the terms at which they bid. The bond is subject to full or partial forfeiture if the…
Admin
Glossary
August 4, 2022

Arrangement Fee

In project finance, usually the fee paid by the sponsor(s) of a project to the lender(s) acting as Mandated Lead Arranger(s) in return for structuring, documenting and syndicating the necessary loan facilities. From this fee the Mandated Lead Arranger(s) will typically pay Participation Fees to the lenders joining the transaction…
Admin
Glossary
August 3, 2022

Annual Debt Service Cover Ratio (ADSCR)

The ratio of Cashflow Available for Debt Service to interest payments and loan repayments in a given period. The most commonly used ratio for the sculpting and stress-testing of debt service payments and the setting / testing of cashflow-based covenants.
Admin
Glossary
August 2, 2022

Amortisation

With regard to loans, amortisation is the process of reducing the size of the loan by making scheduled repayments of principal (as opposed to the interest due on the loan outstandings). The amortisation schedule is thus the agreed series of repayments built into the loan agreement. In accounting, amortisation is…
Admin
Glossary
August 1, 2022

Advance Payment Guarantee

Where a construction contractor receives an advance payment (often in the range of 10-20% of contract price) he will frequently be required to post a Bond for the same amount by way of security until the amount of work represented by the payment has been carried out. The bond will…
Admin
Glossary
July 28, 2022

Methane

A chemical compound with the chemical formula CH4 (one atom of carbon and four atoms of hydrogen). It is the simplest alkane and the main constituent of natural gas. At room temperature and standard pressure, methane is a colourless, odourless gas. The familiar smell of natural gas as used in…
Steve Mills
Glossary
July 26, 2022

Liquefied Natural Gas (LNG)

Liquefied natural gas (LNG) is natural gas (predominantly methane, CH4, with some mixture of ethane C2H6) that has been cooled down to liquid form for ease and safety of non-pressurized storage or transport. It takes up about 1/600th the volume of natural gas in the gaseous state (at standard conditions…
Steve Mills
Glossary
July 25, 2022

Japan Customs-Cleared Crude (JCC)

The Japan Customs-cleared Crude (JCC) is the average price of customs-cleared crude oil imports into Japan (formerly the average of the top twenty crude oils by volume) as reported in customs statistics; nicknamed the "Japanese Crude Cocktail". It is a commonly used index in long term LNG contracts in Japan,…
Steve Mills
Glossary
July 22, 2022

Associated Gas

Associated gas is gas produced as a by-product of the production of crude oil. Associated gas reserves are typically developed for the production of crude oil, which pays for the field development costs. The reserves typically produce at peak levels for a few years and then decline. Associated gas is…
Steve Mills