IJ's glossary contains terms for which IJ has a particular interpretation or terms that have varying definitions in the market (for example, "financial close"). Terms that are generally accepted in the market (for example, "DBFOM") shall not be included in this glossary.
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The stage at which a formal expression has been made of a transaction or other activity.
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.
Company Type & Company Role
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.
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.
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.
The term used by IJ to group any type of financing of or investment in infrastructure. “Infrastructure Finance” is the sum of and is not distinct from what IJ describes as Project Finance, Corporate Finance and Non-Commercial Finance.
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.
The term employed by IJ to describe transactions that involve neither equity from the private sector nor debt from commercial lenders. IJ reserves this designation for transactions where the counterparties providing equity are predominantly state-owned and where debt (if any) is provided entirely by Development Finance Institutions.
Previously called “Public Finance”.
IJ considers Project Finance as the peculiar form of finance that is fundamentally defined by recourse only to the transaction SPV and the repayment of debt through the internal cashflows of that transaction.
IJ’s definition of Project Finance conforms to industry standards, usually including all of the following attributes:
- Borrower is an SPV
- Lending decisions based on future cashflows related to the asset or transaction, as opposed to the creditworthiness of the sponsor or parent
- Covenants limiting the project and SPV’s actions
- Limited or no recourse to sponsors
- Full recourse to project or transaction assets
A lender that is more than 50% owned by the state or state-owned entities. However, it is important to note that IJ considers any such entity acting outside of its home jurisdiction as a commercial lender in such instances.
Any entity that is more than 50% owned by the state or other state-owned entities.
The stage before any formal announcement of a transaction or activity.
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.
- 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.
- 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.
- 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.
- 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)
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