Arriving at successful project
financing is not an easily achieved task in today's banking environment. Companies have gone away from traditional institutional financing in search of other more reliable channels of funds. This is where the advent of using bank instruments as a direct source of creating capital for project finance has opened up.
While it is true that a financial instrument is used for credit enhancement such as in the complicated structured financing employing collateralized debt;
bank instruments can be used in a much more simplified fashion to unleash the power of bank credit lines needed to complete project finance.