Technical terms used in this book which are mainly peculiar to project finance are capitalised, and briefly explained in this Glossary, with cross-references to the places in the main text where a fuller explanation can be found; other financial terms used in the book are also explained and cross-referenced in the Glossary, as are the various abbreviations used.

A

abandonment

Failure by the Sponsors to continue with the construction or operation of the project. See 6.8.1

accreting swap

An interest rate swap drawn in installments to match drawing of the notional principal amount. See 9.2.1

acknowledgements and consents

See Direct Agreement(s).

ADB

Asian Development Bank, a regional IFI. See 11.6.5

ADSCR

Annual Debt Service Cover Ratio, the ratio between operating cash flow and debt service over any one year of the project. See 12.9.1

advance payment guarantee

Security provided by the EPC Contractor for amounts paid in advance under the EPC Contract by the Project Company. See 7.1.10

AfDB

African Development Bank, a regional IFI. See 11.6.6

agent bank

The bank liasing between the Project Company and its lenders. See 5.1.8; 13.12

All Risks insurance

Insurance against physical damage to the project during operation. See 7.6.2

ALOP insurance

Advance Loss of Profits insurance.

See also DSU insurance.

amortizing swap

An interest rate swap reduced in installments to match reductions in the notional principal...