Securitization Of Project Finance Loans

There is a huge unmet need for project financing both domestically and internationally. Various types of securitization transactions can be used to assist in meeting this need. For example, after a project has been constructed and is performing satisfactorily, a special purpose entity ("SPE") could issue debt and equity securities and use the proceeds to purchase project loans from the original lender. Alternatively, at such time, the SPE could use the proceeds to refinance a project at a lower rate. In both cases, the banks and other financial institutions which originated the project financing and evaluated and took the construction and similar risks, would be paid out, thereby making these funds available to be lent to finance other projects.