Noncommercial risk insurance and guarantees cover (a) the local legal and regulatory environment, and (b) political risks such as transfer restriction, expropriation, breach of contract, war and civil disturbance.

Commercial risks consist of (a) risks connected with developing and constructing, operating and maintaining the assets and finding a market for output of the project, and (b) broader economic environment risks related to interest rate change, inflation, currency risks, international price movements of raw materials and energy inputs.

Our focus is on helping our clients to develop effective financing with security packages which meet their own commercial needs and the requirements of the lenders.

Project lenders' security interests in the project financing may include:-

• a pledge of the project company's real estate property,
  
• a pledge of the rights in the project company's bank account contracts,
  
• a pledge of the company's movable property,
  
• an assignment by the project company of its rights in respect of insurance,
  
• an assignment by the project company of its rights under the project agreements,
  
• a charge over the project company's accounts receivables,
  
• a pledge by the sponsors of their shares in the project company,
  
• a promissory note endorsed by the creditable parent of the project company,
  
• a letter of guarantee from the creditable parent of the project company,
  
• a letter of comfort or awareness from the highly creditable parent of the project company,
  
• a letter of guarantee from a bank.