Project Finance 2024

1. What are the typical ownership structures for project companies in your jurisdiction? Does this vary based on the industry sector?

The Cayman Islands are considered to be an attractive tax neutral jurisdiction by project owners (also known as sponsors) seeking to raise international capital. This capital is usually contributed to a Cayman Islands holding vehicle that in turn owns the shares of the underlying project company. The most common type of vehicle used for these transactions is the Cayman Islands exempted company, although limited liability companies (or LLCs), exempted limited partnerships and trusts are also available. These vehicles are then typically funded by way of loan contributions from the sponsors, with share security over the project company typically then granted in favour of the project lenders.