Project Finance: Practical Case Studies

Bond transfer risk Ownership and transfer of the bonds was to occur only on the books of the Depository Trust Company in New Yor ...

investment grade government issue in Southeast Asia since the Philippine issue in April 1998. The bonds, with a spread of 4.35 p ...

Moody’s. In its rating analysis Moody’s cited contracts providing for strong cash flow in sup- port of debt-service coverage rat ...

In February 1998 Standard & Poor’s reaffirmed its existing ratings for Quezon Power, but revised its outlook from stable to ...

risk and that Meralco take a higher share of commercial risk. Meralco currently was required to make an almost full capacity pay ...

Chapter 12 Drax, United Kingdom Project summary^1 Drax, a coal-fired power station located in North Yorkshire in England, is one ...

plant for US$3 billion, which was more than was expected, and financed it with substantial leverage. One of the factors that was ...

the price of electricity at any particular time. The price for all generating units was the mar- ginal price, determined by the ...

the counterparty. The Pool system was criticised by some who claimed that it frequently resulted in unnecessarily high power pri ...

Potomac River from Washington, DC. The company was started in 1981 by Roger Sant and Dennis W. Bakke, who had been colleagues in ...

POWER PLANT Exhibit 12.2 Structure of the acquisition and refinancing The AES Corporation (US) AES UK Power LLC (US) 100% 99% 1% ...

ing. When the management of AES negotiated the agreement, it was aware that TXU would have liked to own Drax, but was subject to ...

Intercreditor Agreements Under the Intercreditor Deed the senior bondholders share security with the bank lenders, including sec ...

Distribution test The project must pass a distrib- ution test, calculated on each interest payment date, before distributions ar ...

tion to produce electricity as cheaply as its contemporaries, but without any emission constraints. The plant appeared to have n ...

Drax’s costs were above those for nuclear plants and the newest combined-cycle gas-turbine (CCGT) plants, but below those of old ...

therefore that there was a high probability that the plant would be dispatched virtually all of the time. Finally, the consultan ...

The hedging arrangement with investment-grade-rated TXU reduced merchant risk sub- stantially by supporting most of debt servic ...

The TXU Europe contract offered some mitigation of that risk. Moody’s also observed that Drax would have reduced flexibility in ...

at the end of August. Moody’s said that it expected to reconfirm its ‘B1’ rating on the subor- dinated notes if the banks grante ...