The loan to the Project Owner is in the form of Project Finance. What is a “Project Finance” ?
CGCA Credit Guarantees and Loans from Banks to Project Owners are parts of a “Project Finance”. Project financing involves non-recourse financing of the development and construction of a particular project in which the Lending Bank and CGCA look principally to the revenues expected to be generated by the project for the repayment of its loan and to the assets of the project as collateral for its loan rather than to the general credit of the project sponsor. The “assets” referred to in here which serves as the collateral of the Project Owner are: (a) The Title/s to the property/ties; (b) The improvement or the project itself; (c) The income generated from operating the project facilities; and (d) other sources or alternative income, such as the sales of timeshare certificates, proprietary shares, membership fees, and many others.
