Project Finance

[traineeintraining]

Hello does anyone know any resources that can help me to understand project financing ; specifically bridge to bond structures ?

 

[Anon08]

This is good https://charterschoolcapital.org/blog/the-bridge-to-bond-how-to-finance-pre-bond-facility-expenses/ - note, it is in the context of schools; however, I think that helps illustrate things better.

Of course, see Investopedia: https://www.investopedia.com/terms/b/bridgefinancing.asp and CFI: https://corporatefinanceinstitute.com/resources/knowledge/credit/bridge-financing/

And if you are super keen on project finance, feast your eyes on this!

 

[Jacob Miller]

Hello does anyone know any resources that can help me to understand project financing ; specifically bridge to bond structures ?

Hi,

This Investopedia article is quite good for discussing project finance more generally.

Let's now have a think about bridge-to-bond facilities specifically:

• There are 2 simple elements to consider here: 'bridge' and 'bond'
• A bridge facility is a short-term financing option, designed to act as an interim measure before the long-term finance for a given project can commence. It is, literally, a 'bridge' between a project kicking off and its longer-term financing measures coming into play.
• Bridge to bond is just where the long-term financing will be from the issuing of (typically high-yield) bonds. Bond issue can take a while, so the bridge is put in place during the time the bond issue is being organised and administered so the project can keep going efficiently and without delays.

Hope this helps!

 

[traineeintraining]

Hi,

This Investopedia article is quite good for discussing project finance more generally.

Let's now have a think about bridge-to-bond facilities specifically:

• There are 2 simple elements to consider here: 'bridge' and 'bond'
• A bridge facility is a short-term financing option, designed to act as an interim measure before the long-term finance for a given project can commence. It is, literally, a 'bridge' between a project kicking off and its longer-term financing measures coming into play.
• Bridge to bond is just where the long-term financing will be from the issuing of (typically high-yield) bonds. Bond issue can take a while, so the bridge is put in place during the time the bond issue is being organised and administered so the project can keep going efficiently and without delays.

Hope this helps!

Thank you so much!

 

[traineeintraining]

This is good https://charterschoolcapital.org/blog/the-bridge-to-bond-how-to-finance-pre-bond-facility-expenses/ - note, it is in the context of schools; however, I think that helps illustrate things better.

Of course, see Investopedia: https://www.investopedia.com/terms/b/bridgefinancing.asp and CFI: https://corporatefinanceinstitute.com/resources/knowledge/credit/bridge-financing/

And if you are super keen on project finance, feast your eyes on this!

Thank you !