Project Finance In Spain

A considerable number of projects have been financed through project financing techniques over the last years in Spain. However, despite the increasing number of major infrastructures projects and the increasing use of this financing tool, there is no specific legislation governing project financing transactions in Spain. Instead, there is a wide range of public law regulations that affect in one way or the other the way project finance transactions are structured. This paper briefly describes the relevant legislation in the field and the contractual structures generally used by practitioners and market participants.

A local project company with a single purpose will be formed to build, own and operate the project. Among all corporate forms available under Spanish law, the limited liability company ("sociedad de responsabilidad limitada" or "S.L.") is the preferred vehicle for project finance deals. This corporate form affords limited liability