Structured Financing (e.g., Project Financing)

Among structured financing products, project financing is a particular financing method that focuses on your company's actual cash flow rather than on its overall credit strength. We focus on this type of financing and, as an example, indicate the schema we implemented for a wind power company. Similar schemata can be used for other businesses and PFIs.

A special purpose company (SPC) is established to own the generators and to enter into various contracts, and then project financing is used to provide that SPC with the necessary facilities investment funding. The SPC uses the sales of electricity from the power company as capital to pay expenses, repay financing and issue dividends to investors.

When NTT FINANCE takes on a portion of the business risks, loan repayment limited to the cash flow generated by the wind power company. This has the advantage of reducing the repayment burden on the business.