Database Eligible Sectors:
- Oil & Gas – upstream, midstream, downstream, petrochemicals, LNG
- Renewables – biofuels, biomass, small hydro (less than 20MW), energy storage, geothermal, waste-to-energy (WtE), solar thermal, solar PV (incl. floating solar), onshore wind, offshore wind (incl. floating offshore wind), EV charging, hydrogen (incl. green hydrogen, blue hydrogen, etc.)
- Power – gas-fired, coal-fired, carbon capture & storage (CCS), oil-fired, nuclear, IWPP (independent water and power production), co-generation, transmission & distribution (power lines, substations, gas distribution, etc.), large hydro (upwards of 20MW)
- Transport – airports, heavy rail, transit (subways, light rail, buses, metro), ports, maritime transport, roads, tunnels, bridges
- Social Infrastructure – healthcare, education, social housing, leisure, fire & rescue, justice, defence, municipal, waste & recycling, street lightning, district heating & district cooling
- Water & Sewage – desalination, distribution (pipe networks, pipelines, reservoirs, dams, supply, storage, irrigation, aquifers), treatment (sewage treatment, waste water & water treatment)
- Telecoms – internet (internet networks and operators), data centers, terrestrial (comm towers, base stations), mobile (cable, fibre optic, broadband), satellite, digital infrastructure (smart cities, 4G, 5G, etc.)
- Mining & Metals – extraction, facilities and operations for the mining, smelting and processing of minerals, base metals, precious metals, coal, and manufacturing facilities (steelmakers, steel mills, aluminum plants, smelters and refineries)
- Non-Commercial Finance – The term employed by IJ to describe transactions that involve either equity from the public sector or debt solely from DFIs. IJ reserves this designation for transactions where the counterparties providing equity are predominantly state-owned or where debt (if any) is provided entirely by Development Finance Institutions. Previously called “Public Sector Finance”.
- Project Finance - includes transactions funding Greenfield projects, brownfield development, expansion of existing assets, reserve-based lending, refinancing existing project finance debt, providing additional debt facilities to existing projects and funding straight acquisitions of infrastructure assets. Transaction should have at least one private sponsor. Deals in which the SPV is 100% state-owned are not eligible for project finance ranking. Debt financing must be on a non-recourse or limited-recourse basis.
- Corporate Finance - includes transactions financing of infrastructure through equity or debt, or a combination of these, on a basis that is not non-recourse or limited-recourse. This may include pure-equity financing of infrastructure, balance-sheet deals or generally where there is significant recourse to the deal sponsors.
- Infrastructure Finance - combines all Project Finance, Corporate Finance (excluding company acquisitions) and Public Sector Finance transactions. The latter involves the financing of infrastructure that is entirely driven by state-owned entities, or on the debt side financed entirely by DFI. However, it excludes direct public- or taxpayer-funded infrastructure development.
- Additional Facility – refers to the additional debt required by the SPV after the initial project financing.
- Asset acquisition – This transaction refers to financing the acquisition of a part of a project or company unit. (i.e. assets only).
- Portfolio Financing – This transaction refers to acquisition or financing of a group of distinct assets. The financing here is being treated as a single financial transaction but for multiple assets – for example, a group of nine schools. The assets can be either greenfield or brownfield.
- Primary Financing - The transaction refers to the initial financing raised by an SPV or Sponsor. Primary Financing can be used for greenfield or brownfield developments.
- Refinancing – This transaction refers to replacement of an existing debt obligation with a debt obligation bearing new and different terms.
- Company Acquisition – This is where the financing is being used to acquire a company, as opposed to an asset/project.
- Privatisation – This is where a public-sector entity is selling off or privatising an asset or group of assets.
- Securitisation – This is where an asset or pool of assets are converted into instruments that can be sold to investors to raise funds.
- Design-Build- A project delivery system used in the construction industry. It is a method to deliver a project in which the design and construction services are contracted by a single entity known as the design–builder or design–build contractor. The Design-Build category is generally intended for deals that do not contain any debt financing and there is no concession to operate the asset.
IJ uses the following five broad stages to describe the status of a transaction at any given time. These stages are designed to allow users to quickly isolate transactions using broad bandings; IJ provides more granular milestones under its Events & Date for users seeking greater precision (please see “Events & Date” definition.
- Pre-Financing- This category applies to transactions currently between the earliest possible stage of conception up to the point at which financing agreements are being prepared. At the earlier end, this can include transactions that are being discussed by government or sponsors or have been formally announced. At the later end, this category is also applied to transactions where feasibility and other studies are completed and tendering has advanced.
- Financing- This category applies to transactions that for which financing is being arranged but yet to close. The definition of “arranged” at the earlier end may include early-stage discussions on financing, and at the later end may include transactions that are close to concluding financing. This category can and does include transactions at commercial close or dry close, where the transaction is almost at financial close but where one or more conditions precedent are outstanding.
- Financial Close- This category applies to transactions where all financing documentation has been signed, all conditions precedent have been satisfied or waived and initial drawdown is contractually possible. In transactions that involve no debt financing, IJ considers the signing of project or transaction documentation as a proxy for financial close.
- Cancelled- This category applies to transactions that have now been formally cancelled. IJ's definition of "formally" here includes a public announcement or information provided to IJ by any counterparties or advisers on the transaction. IJ does not consider a delayed or mothballed transaction as cancelled and will not use this designation in those instances. In the scenario that a new transaction identical or similar to a previously cancelled transaction emerges, IJ will retain the record and attributes for the cancelled transaction and will instead create a new transaction to reflect the revived deal.
PPP (and variations):
As IJ’s data products cover all jurisdictions globally, IJ’s definition of PPP is deliberately broad. IJ usually requires that a PPP contains the following attributes:
- Procurement conducted by a public-sector procuring authority or other government body
- Private partner that is at least majority-owned by the private sector
- Some element of commercial debt financing
- Responsibility for arranging financing to lie with the private partner
- Little or no responsibility for the public partner to service debt
- Usually a concession period
IJ applies the “PPP” designation not only to primary, greenfield financings but also to refinancing, acquisitions or securitisations of PPP assets.
Claims by project sponsors (or other counterparties) that a given project is a “PPP” is not taken by IJ as sufficient to qualify for this designation. IJ will routinely withhold a PPP designation for some projects that it does not feel meets the above attributes.
IJ applies the "PPP" designation to variations on the model, including but not limited to P3, PSP, PFP, PFI and NPD.
- Pre-tendering - when contracting authority invites interested companies or organisations to submit a tender process. It refers to when contractors are planning to make a bid for a certain concession. Establishing the contract on which the tender may be based.
- Tendering- refers to the stage when an official offer to carry out the work has been sent.
- Short List - when preferable items or candidates that have been selected for final consideration.
- Preferred Bidder - when a final consideration has been done and the bidder with the best offer has been selected.
- Concessionaire - when the holder or operator of the concession is in place.
- Concession retired - refers to the stage when the concession is terminated.
- BLT-Build-Lease-Transfer- a private contractor builds (and finances) a project on behalf of a public sector partner and then leases the project back to the public sector for a predetermined period (referred to as the lease or concession period).
- BOO- Build-Own-Operate- The public sector transfers to the private sector ownership and management of an existing facility or negotiates with the private partner the construction and management of a new facility that will not be transferred by the private sector (as it happens under a BOOT scheme). The provision of funding is in charge to the private sector.
- BOOT- Build-Own-Operate-Transfer- The private sector stipulates a concession agreement with the public body and obtains the ownership of the facility. It is entitled to design, build, operate/maintain the facility. Funding is provided by the private partner, who has the right to retain the revenues coming from the management of the facility during the concession period. The concession period must be sufficiently long so to enable private partners to pay back the investment and get an adequate return on investment. At the end of the concession, the facility ownership is returned to the public sector.
- BOT- Build-Operate-Transfer- The private partner builds a facility compliant with the standards agreed with the public entity. Then it manages it for a given period of time and transfers the facility at the end of the concession period. The project should repay the investment made by the private sector during the concession period. In BOT the ownership of the facility remains to the public body.
- BTO-Build-Transfer-Operate- BOT and BTO arrangements are frequently integral parts of concession agreements. The difference between these models is the time at which the operator transfers the newly constructed assets to the public entity. Here, the transfer is conducted immediately upon the completion of construction and the operator receives the equivalent of a management contract
- DBF- Design-Build-Finance- a single contract is awarded for the design, construction, and full or partial financing of a facility. Responsibility for the long-term maintenance and operation of the facility remains with the project sponsor, but could be included in a separate agreement.
- DBFM- Design-Build-Finance-Maintain- The private sector designs, builds and finances an asset and provides hard facility management or maintenance services under a long-term agreement.
- DBFMO- Design-Build-Finance-Maintain-Operate- The private sector designs, builds, finances and provides maintenance services under a long-term agreement. Operation of the asset is also included in projects such as bridges, roads and water treatment plants
- DBFO- Design-Build-Finance-Operate- the term used in the U.S. to identify BOOT schemes
- DBFOT- Design-Build-Finance-Operate-Transfer- The private sector designs, builds, finances and operates the asset for a given period of time and then transfers it facility at the end of the concession period.
- DBOO- Design-Build-Own-Operate- similar to the BOO model
- Lease- The private sector provides funding and builds a new facility that is then leased to the public entity. The public party makes periodic leasing payments to the private party and has the right to acquire the facility at the end of the leasing contract.
- Bank Market Approach- the sponsor approaches banks to work on the lending.
- Best and Final Offer- A formal stage of requesting bidders to document their bidding position in a manner which is capable of being formally compared with other bids and leading to the award of a contract with one bidder.
- Cancelled- Indicates that a project has been cancelled.
- Financial Close -The stage at which all financing documentation has been signed, all conditions precedent have been satisfied or waived and initial drawdown is contractually possible. IJ does not consider the signing of financing documentation alone as financial close. In transactions that involve no debt financing, IJ considers the signing of project or transaction documentation as a proxy for financial close.
- General announcement- The point at which details around a project/deal are publicly announced. This option is also used for a follow-up event, which does not fit any other event criteria.
- Preferred Bidder- The bidder who submits the best negotiating position in response to the ITN.
- Transaction Announced- The stage at which a formal expression has been made of a transaction or other activity
- Request for Proposals (RFP)- The invitation for suppliers, often through a bidding process, to submit a proposal on a specific commodity or service.
- Request for Qualification- A document often distributed before initiation of the RFP process. It is used to gather vendor information from multiple companies to generate a pool of prospects. This facilitates and eases the RFP review process by preemptively short-listing candidates who meet the desired qualifications or criteria.
- Shortlist- The list of preferable items or candidates that have been selected for final consideration.
- Tender Launch- The start of the process by which one can seek prices and terms for a particular project to be carried out under the contract.
- Mothballed- A designation for transactions or projects or funds that have ceased material and meaningful progress, in a methodology pioneered by IJ. A transaction or project of fund shall be designated “Mothballed” if, at a minimum, was at some stage formally announced or was understood by IJ to be in action but for a period of nine months failed to produce any material and meaningful progress. IJ’s Financial Data Analysts investigate each individual transaction and make efforts to contact counterparties on any given transaction before considering applying this designation.
- Risk Alert- Events that hinder/delay the successful and timely completion of a transaction. There are 6 options:
- Delay – postponing of the finalization of a transaction (e.g. postponing of bidding process)
- Uncertainty –uncertainty about whether deal conditions will be met
- Legal - legal conflicts or regulatory issues
- Political - political disputes, turmoil
- Financial – issues with financing (e.g. higher than expected costs
- Other - all other risks that do not fall in the aforementioned criteria
- Commercial Close- The stage at which project or transaction documentation has been signed and the transaction effectively concluded but where one or more conditions precedent are outstanding. At this stage, borrowers are contractually incapable of initial drawdown. Also called Dry Close.
- Undisclosed Financial Close Transaction- A financial close event used when no exact date is available for a deal's completion
Tranche Types Definitions
- Cash Equity- refers to the liquid portion of an investment that can be easily redeemed for cash
- Equity Bridge Loan- also known as “subscription line facilities” or “capital call facilities”, are short-term loans leveraged on the limited partners' commitments of infrastructure, private equity, real estate or other funds, and usually take the form of revolving facilities.
- Tax Equity- Financing provided by institutions to fund construction costs of solar projects in the United States. Tax Equity providers receive the benefits of tax credits, but do not hold direct ownership in the project.
- Tax Credit- a tax incentive which allows certain taxpayers to subtract the amount of the credit they have accrued from the total they owe the state. It may also be a credit granted in recognition of taxes already paid or, as in the United Kingdom, a form of state support.
- Government Grant- a financial award given by the federal, state or local government to fund some type of beneficial project.
- Term Loan- a monetary loan that is repaid in regular payments over a set period of time. Term loans usually last between one and ten years, but may last as long as 30 years in some cases. A term loan usually involves an unfixed interest rate that will add additional balance to be repaid.
- Credit Facility- a type of loan made in a business or corporate finance context, including revolving credit, term loans, committed facilities, letters of credit, and most retail credit accounts.
- Debt Service Reserve Facility- Reserve established to service interest and principal payments on short- and long-term debt. Also called a debt service fund.
- Bridge Facility- a type of short-term loan, typically taken out for a period of 2 weeks to 3 years pending the arrangement of larger or longer-term financing. It is usually called a bridging loan in the United Kingdom, also known as a "caveat loan," and also known in some applications as a swing loan.
- Standby Facility- a sum of money, not to exceed a predetermined amount, that can be borrowed in part or in full from a credit-granting institution if the borrower needs it. In contrast, an outright loan would be a lump sum of money that the borrower intended to use for sure.
- VAT Facility- used to finance the VAT deficit incurred during the construction period of the project. Interest and financial costs on the VAT facility are capitalized during the construction period.
- Mezzanine Debt- a hybrid of debt and equity financing that gives the lender the right to convert to an equity interest in the company in case of default, generally, after venture capital companies and other senior lenders are paid.
- Working Capital- a loan that is taken to finance a company's everyday operations. These loans are not used to buy long-term assets or investments and are, instead, used to provide the working capital that covers a company's short-term operational needs.
- Letter of Credit- a letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make a payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase.
- Islamic Loan- Any form of financing made according to Islamic law, which forbids the payment or receipt of interest. An Islamic loan may be an interest-free loan, but often it is a more complex transaction.
- Sponsor Loan- a loan made to the project by one or several project's sponsors (i.e., the SPV shareholders)
- Assumed Debt- a special form of debt refinancing, involving three parties—the creditor, the original debtor, and a new debtor who assumes the debt obligation.
- Guarantee- pledge by one party to become liable for a debt obligation if a borrower defaults. The guaranteeing party is called the guarantor. The guarantor might be liable for just a portion of the debt (limited guarantee) or all of it (unlimited).
- A Loan- A senior term loan or term loan A (TLA) that usually matures within five to six years. TLA tranches typically amortize, with the borrower having to repay an amount of the TLA each year equal to between 5.0% and 20.0% of the initial principal amount of the loan. The amount of the amortization payment generally increases during the term of the loan, with the percentage amount starting low and increasing each year until the maturity date. The interest rate margins for TLA tranches under credit facilities that include revolving credit loans are often the same as for the revolving credit loans.
- Revolver- A revolving credit facility is a line of credit that is arranged between a bank and a business. It has an established maximum amount, where the business has access to the funds at any time when needed. This type of credit is mostly useful for operating purposes, especially for any business experiencing sharp fluctuations in their cash flows and some unexpected large expenses. In other words, it is needed for companies that may sometimes have low cash balances to support their net working capital needs. Because of this, it is often considered a form of short-term financing that is usually paid off quickly.
- Green Loan- a loan instrument made available exclusively to finance or refinance, in whole or in part, new and/or existing eligible ‘green projects’/ lending dependent on environmental criteria for the planned use of funds
- Sustainability-linked Loan- loan instrument that incentivises the borrower’s achievement of ambitious, predetermined sustainability performance objectives.
- Tax Equity Bridge Loan- Bridge financing that is repaid with funding from the tax equity investor once construction is finished and the facility produces tax credits.
- Commercial Bond- debt issued by a company in order for it to raise capital
- Islamic Bond- or Sukuk is a sharia-compliant bond-like instruments used in Islamic finance
- Municipal Bond- a debt security issued by a state, municipality, or county to finance its capital expenditures
- Green Bond- a bond facility made available exclusively to finance or refinance, in whole or in part, new and/or existing eligible ‘green projects’/ lending dependent on environmental criteria for the planned use of funds
- Sustainability-linked Bond- a bond facility that incentivises the borrower’s achievement of ambitious, predetermined sustainability performance objectives.
IFI Government Support:
- Export Credit Facility- a loan in which the lenders are Export credit agencies
- Development Bank Loan- a loan in which the lenders are development banks. IJ considers any non-commercial policy lender that has a mandate in only one jurisdiction and that has a single national government on its board as a Development Bank.
- Multilateral Loan- a loan in which the lenders are Multilaterals. IJ considers any non-commercial policy lender that has a mandate across more than one jurisdiction and more than one national government on its board as a Multilateral.
- Government Loan- a loan in which the lenders are government entities
- Developer- This is a company that physically builds projects and infrastructure.
- Engineering Procurement and Construction Firm – A company which offers a full package of services and coordination relating to the construction and completion of infrastructure projects according to schedule.
- Private Equity – an investment management company that provides financial backing and makes investments in the private equity of start-up or operating companies.
- Infrastructure Fund – A fund which invests in infrastructure projects and companies. Relevant funds include all that make investments in the infrastructure sectors covered by IJGlobal.
- Pension Fund – These could be Private (Pension funds for private-sector companies) and Public (Pension funds for government organisations or departments. This includes pension funds for companies that are state-owned),
- Sovereign Wealth Fund – A Sovereign Wealth Fund (or SWF) is a fund set up by a country to make investments to generate returns for a nation.
- Utility – an organization that maintains the infrastructure for a public service.
- Private Company – a privately-owned (at least 51%) company that has operations but is not involved in infrastructure and does not fall in to one of the other categories.
- Public Company – a public company that has operations but is not involved in infrastructure and does not fall in to one of the other categories.
- Private Investor – refers to an individual rather than a company.
- State-owned Company – a state-owned (at least 51%) company that has operations but is not involved in infrastructure and does not fall in to one of the other categories.
- Government Agency/Public Authority – An entity which is part of a central or local government and has controlling, regulatory and/or executive functions, among others.
- International Financial Institution – founded by groups of countries to promote public and private investment to foster economic and social development in developing and transitioning countries.
- Public Financial Institution – a state-owned bank which does not fall into the categories: Development Bank, International Financial Institution, etc.
- Export Credit Agency – an institution that lends money specifically to help support exporting of goods or services.
- Development Bank – any non-commercial policy lender that has a mandate in only one jurisdiction and that has a single national government on its board.
- Multilateral – any non-commercial policy lender that has a mandate across more than one jurisdiction and more than one national government on its board.
- Commercial Bank – a bank that is in the private sector (at least 51% privately owned).
- Investment Bank – a financial services company that acts as an intermediary in large and complex financial transactions.
- State or National Bank – This is a bank that is owned by a state. Definition of this is 51% owned by the state.
- Insurance Company – Any kind of insurance company. Includes general insurance, reinsurance, life insurance.
- Law Firm – A company that provides legal advice and legal services.
- Financial Service Provider – a business that manages money on behalf of customers. They include banks, credit unions and other consumer finance companies.
- Ratings Agency – A company that assesses the financial strength of companies and government entities, especially their ability to meet principal and interest payments on their debts
IJ’s data products distinguish between a company’s core function, which it describes as Company Type, and the given company’s activity, which IJ describes as Company Role.
For example, a bank shall be recorded as a “Commercial Bank” in IJ’s taxonomy, but may be found as an “MLA”, “Bond Arranger” or “Financial Adviser” (to name a few examples) within a transaction.
- Adviser- a firm that provides advisory services to the sponsor(s), lender(s) or government, which is critical to the financing of an infrastructure asset. For League Table purposes, IJGlobal allocates credit only to companies officially mandated on a project or transaction. A company providing ancillary, supplementary or very early-stage advisory will not be allocated credit.
- Technical Adviser- a company evaluating the feasibility of a project or financing related to a project. For the purposes of League Tables, the roles of independent engineer, market consultant and transmission consultant have technical adviser accreditation.
- Mandated Lead Arranger (MLA)- the lender (or lenders) responsible for debt origination and/or underwriting at financial close. Banks given the title MLA in general syndication more than 90 days post-financial close will not receive League Table credit.
- Sponsor- For reporting purposes, IJGlobal assigns the title Sponsor to a variety of roles:
- in project finance deals the Sponsor is the entity (or entities), public or private, which is the primary developer of a given project or portfolio of projects and is the borrower in all project financing deals. The Sponsor is the owner of the project SPV and makes equity contributions
- in corporate finance deals the Sponsor role is assigned to the borrower
- in acquisition deals the Sponsor is the buyer of assets/companies
- Development Bank- IJ considers any non-commercial policy lender that has a mandate in only one jurisdiction and that has a single national government on its board as a Development Bank. IJ Includes Development Banks in its Development Finance Institution grouping of lenders, along with Multilaterals and ECAs.
- Development Finance Institution- The umbrella term used by IJ to group three types of institutions: Development Banks, Multilaterals and ECAs. IJ’s data products do not designate any entity as a DFI but do assign one of the three constituent DFI entity types to relevant institutions.
- Multilateral- IJ considers any non-commercial policy lender that has a mandate across more than one jurisdiction and more than one national government on its board as a Multilateral. IJ includes Multilateral entities in its Development Finance Institution grouping of lenders, along with Development Banks and ECAs.
- State Lender- A lender that is more than 50% owned by the state or state-owned entities.
- State-Owned Entity- Any entity that is more than 50% owned by the state or other state-owned entities.
- Greenfield- Greenfield Projects are those built on unused or unoccupied land and do not involve the transformation of an existing project
- Brownfield- Brownfield Projects relate to expansions or modifications to existing projects. They could also represent new projects that are being built on already occupied land.
- Pre- Development- If work on project has not yet been started, the Project Stage is considered as pre Development stage. I.e.: Projects under planning and at study or design/Front End Engineering Design (FEED) stage.
- In Development- If the project is finalized and its bidding process, etc. is in progress, the stage is considered as In Development stage. I.e.: Once an Expression of Interest (EOI), Request for Qualification (RFQ) or Request for Proposal (RFP) for main construction contract has been issued.
- Construction- When the construction work is in progress, the project stage is considered as Construction stage.
- Operational- On completion of the entire construction for the project and after getting all the necessary approvals, the project stage is considered as Operational.
- New- This Project Sub Type refers to a totally new project. It is selected when the Project Type is set to Greenfield.
- Expansion- This project Sub Type refers to new addition to an existing project. It is also one of the options for selection when the Project Type is set to Brownfield.
- Refurbishment- This Project Sub Type refers to a restoration of a previously extant project. It may include overhauling, renovation, or clean-up of existing fully-completed or partly-completed facility. It is selected when the Project Type is set to Brownfield.
- Redevelopment- This Project Sub Type refers to demolition and reconstruction of existing facility. It is also one of the options for selection when the Project Type is set to Brownfield.
Asset Event Type:
- Construction – The process that consists of building or assembling infrastructure.
- EPC Contract – The contract that hands over all the design, development and construction risks to the contractor (turn-key).
- Operational – The point at which a project has been completed and the corresponding infrastructures are fully operational.
- Approval – When an approval has been granted for a specific project. To use when the type of approval is not specified.
- Feasibility Study – The preliminary study undertaken to determine and document a project's viability; or the discipline of planning, organising and managing resources to bring about the successful completion of a specific project’s goals and objectives.
Please visit League Tables Criteria & Methodology for the details on IJGlobal League Tables.
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