Russia

Project Financing 

Project financing is the process of providing targeted financing (credit) for carrying out an investment project. Unlike with other types of financing, this credit is eventually reimbursed, either solely or in large part, from the cash income generated by the project that receives the investment. The project is deemed a success if the borrower is solvent.

Contacts

Irina Narysheva

Irina Narysheva

Partner, Head of Legal Services

+7 495 937 44 77

Participants

The participants in an investment project are typically: (1) a bank (creditor) that provides the majority of the financing (usually 70-80 percent); (2) an investor, which is the entity that initiates the project and provides co-financing (usually 20-30 percent); and (3) the company carrying out the project.

KPMG’s role

We provide tax advisory services, and legal support at every stage of project financing – from the preparation and negotiation of transaction documents during the project’s initial stages, all throughout the transaction itself, and finally up to the audit stage for companies involved in the project. These services allow the project to be carried out in a way that is both more effective and less costly than would be possible otherwise.

 

At KPMG, our team includes members who have specialized in issues related to financial instruments, and they can prepare recommendations on the steps that should be taken to conform with Russian Accounting Standards (RAS) and International Financial Reporting Standards (IFRS) when hedging the project. KPMG can also analyze the effect of relevant tax regimes on hedging operations and derivatives.

Our approach

More information on Project Financing: