|
- UID
- 223256
- 帖子
- 209
- 主题
- 93
- 注册时间
- 2011-7-11
- 最后登录
- 2016-4-18
|
Is Project Finance IB or Commercial Banking ???
Hey all,
I am wondering about your views on the matter.
In my mind it's not IB but commercial banking.
However, some investment banks' project finance department is a part of their IBD or structured finance department.
Wikipedia seems to group project finance under "core investment banking activities".
Some stuff inherent to project finance which tend to be associated with IB or structured finance:
- High leverage: Equity in projects tends to range (depending on types of projects) from 20% to as low as 10%. Net Debt / EBITDA in early years tends to be in the 7x to 9x range.
- Extensive cash flow modelling, as debt service is secured by project's cash flows and not sponsor's credit.
- Complex transaction and capital structure, often with many debt tranches that refinance one another at some point.
- ...
Does it qualify in your view as IB ?
Anyone here involved with that type of stuff ? |
|
发表于 2011-10-10 07:39
| 
