Non-Recourse Finance

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Non-Recourse Finance

A loan secured by the revenue of the project the loan intends to fund, and nothing else. That is, non-recourse finance does not allow the bank or other lending institution access to the borrower's other assets in the event of default. This is a relatively high-risk form of financing; projects that utilize non-recourse finance generally have uncertain revenue streams and long loan periods.
References in periodicals archive ?
Merchants Capital is a multifamily, affordable and healthcare lender offering a direct way to access fixed rate, long-term, non-recourse financing via its bank, Merchants Bank, all with a single point of contact.
UOB's Tokyo branch and ESR Sachiura TMKs inked the non-recourse financing facility agreement.
The HUD program provided the borrower with low-rate, long-term, non-recourse financing to pay off the existing loan and fund some minor repairs to the property.
The mortgage insurance allows Love Funding to provide low-rate, non-recourse financing for the construction and for a subsequent 40-year term.
The Berkadia deal, assembled from a pool of investors, transitions the Residence Inn and Hyatt Place loans from floating rate recourse loans to long-term, fixed-rate non-recourse financing, Kautzman said.
The loan component shall be funneled by Indovina Bank of Vietnam and the Rizal Commercial Banking Corporation (RCBC) of the Philippines - cast on a non-recourse financing basis.
DEI has announced a series of corporate actions, including a $1.5 billion equity issuance, non-core asset sales, and expected non-recourse financing of the Dominion Energy Cove Point facility.
For example, the company's statement that they expect to generate positive cash "including operating cash inflows and capital expenditures, as well as the normal inflow of cash received from non-recourse financing activities on leased vehicles and solar products" leaves a rather large range of outcomes for how free cash is created, Jonas said.
This could include bringing in political risk insurance, or sovereign guarantees and getting true non-recourse financing around the deal.
MacCap was able to secure the 75 percent loan-to-value, 4.15 percent, -year fixed-rate, non-recourse financing providing financial and prepayment flexibility over the term of the loan.
"The solar rooftop industry will certainly need better non-recourse financing options by increasing power sector exposure limits of domestic banks," one of the players in the solar industry said.