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Limited Recourse
(redirected from Limited Recourse Financing)

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Limited recourse
A term describing a type of loan in which the lender has limited or no claim against the parent company if the collateral is insufficient to repay the debt. See:Nonrecourse.

Limited Recourse
Describing a loan that is secured up to a certain amount. For example, a loan on which one-third of the principal is secured or collateralized is a limited recourse loan. These loans may be used in project finance; a company may issue a bond with limited recourse for the first five years of its life, after which it becomes fully secured. Limited recourse loans carry lower interest rates than without recourse loans. In the event of liquidation, limited recourse debt is paid after secured debt and before unsecured debt.


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In order to observe prudence, while undertaking Limited Recourse Financing for Infrastructure Projects, banks/DFIs shall secure their interest by Primary Security/Collateral, besides either one or a combination of the Secondary Securities/Collateral.
He added that Emirates Steel's limited recourse financing is scheduled to reach financial close before the end of August 2010.
And in July last year GDF Suez, the French-based energy company, along with Gulf Investment Cooperation (GIC) completed limited recourse financing for the $2.
 
 
 
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