Under this service model, the project sponsor establishes a company for project financing and management.
The company obtains a loan without recourse or with limited recourse from CMB by mortgaging or pledging assets or rights and interests in the project, and repaying the loan using its cash flows and returns.
This financing model is suitable for projects that require huge funding, are high risk but will yield a stable cash flow, and exceed the power of conventional financing models. These projects include the development of natural resources such as natural gas, coal, and oil, and large construction projects in the transportation, electric power, agriculture, forestry, electronics, and public utility sectors.
·The project involves a large amount of lump-sum finance;
·The project is long-term for construction and payback, and involves many uncertainties;
·The project usually generates strong economic and social benefits.
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