Project Financing Services

Powering Your Large-Scale Projects with Strategic Financial Expertise

Project Financing is one of the most effective solutions for funding large and capital-intensive ventures—whether in infrastructure, renewable energy, manufacturing, industrial facilities, or public utility projects. At Kyna Fintax, we understand that such high-value projects demand strategic funding structures, meticulous planning, and compliance at every step of execution. That’s why our Project Financing Services are designed to offer end-to-end assistance—right from structuring the funding to successful project completion.

Below, we detail every key component of Project Financing and how Kyna Fintax delivers value at each stage.

1. Definition and Nature of Project Financing

Project financing is a unique funding arrangement where lenders look primarily at the project’s ability to generate future revenues rather than the existing financial strength of the project sponsors. This is common for large infrastructure projects, power generation plants, metro rail systems, ports, manufacturing expansions, and similar initiatives that require significant capital outlay.

Unlike conventional corporate loans—where repayment is based on the borrower’s balance sheet and credit rating—project finance separates the project from the sponsor’s other businesses and assets. The repayment is made using the project’s own cash flow, and the project itself becomes the collateral.

At Kyna Fintax, we help in identifying the right financing model for your project based on cash flow projections, revenue certainty, sector risks, and lender requirements. By conducting detailed feasibility assessments, we ensure financiers have confidence in the project’s ability to service debt, while sponsors retain financial protection. Our role is to transform your project from concept to bankable reality.

2. Creation of Special Purpose Vehicle (SPV)

An SPV (Special Purpose Vehicle) is the backbone of a project financing structure. It is a legally distinct entity created solely to own, manage, and operate the project. This separation protects sponsors from direct liabilities while providing lenders with a clear legal structure for repayment and collateral.

The SPV enters into all contracts—ranging from engineering, procurement, and construction (EPC) agreements to operations and maintenance (O&M) contracts, power purchase agreements (PPAs), and off-take agreements. All cash flows, revenue collections, and loan repayments are routed through the SPV, ensuring financial transparency.

Kyna Fintax assists at every step of setting up your SPV in compliance with corporate law, tax requirements, and lender norms. We help draft incorporation documents, manage regulatory filings, open designated project bank accounts, and establish governance protocols. Our team ensures the SPV is structured in a way that makes lenders comfortable while giving project sponsors operational clarity and control. In short, we help build a legal and financial framework that is ‘project ready,’ giving you a solid foundation for fundraising.

3. Funding Structure: Equity and Debt Mix

One of the most critical aspects of project financing is determining the optimal combination of equity and debt. The right ratio impacts everything—from project viability and investor returns to repayment timelines and financial risk exposure.

Equity typically comes from the project sponsors and sometimes strategic investors. It shows the sponsors’ commitment and absorbs the initial project risks. Debt, on the other hand, is sourced from banks, financial institutions, or bond markets and must be serviced over an extended period.

Kyna Fintax helps you prepare a detailed financial model that outlines capital requirements, repayment timelines, interest costs, and expected revenue flows. We consult on the most efficient equity-debt ratio that maximizes investor comfort and lender willingness while safeguarding project sustainability. Additionally, our lending network enables us to identify the best financing sources with competitive interest rates and flexible repayment terms.

Our goal is to align the funding structure with the project’s cash flow cycle—ensuring repayments match revenue peaks and minimizing financial stress during early operational phases. This approach not only satisfies lenders but also protects the project’s financial health over the long term.

4. Non-Recourse or Limited Recourse Financing

In non-recourse financing, lenders have no claim beyond the project’s assets and revenues if the project fails. Limited recourse financing offers slightly more rights to lenders but still shields sponsors from full liability. These models protect project sponsors’ balance sheets while providing lenders with clearly defined rights.

Kyna Fintax helps assess whether non-recourse or limited recourse financing is most suitable for your case based on cash flow predictability, asset value, and contractual risk allocation. We work closely with legal and financial teams to draft agreements that define obligations, set repayment hierarchies, and address potential bailout scenarios in compliance with lender standards.

For sponsors, these structures mean reduced corporate risk exposure, while lenders gain security through revenue contracts, operational guarantees, and asset pledges. Our advisory ensures both sides’ interests are balanced, avoiding terms that could limit project flexibility or burden sponsors beyond the scope of the project.

5. Risk Allocation Among Stakeholders

Any large-scale project carries risks—construction delays, operational inefficiencies, market price fluctuations, changes in regulations, or unexpected cost overruns. In project financing, risk allocation is crucial. The principle is simple: assign each risk to the party best equipped to manage it.

Kyna Fintax facilitates structured risk management by ensuring that EPC contractors bear construction risks, operations teams manage technical failures, and financiers take on certain market risks under guaranteed purchase agreements. We coordinate with lawyers, insurers, and financial experts to prepare a ‘risk matrix’ covering every phase of the project.

This risk allocation framework not only reassures lenders but also increases project viability in credit assessments. By making this a contractual requirement in agreements, we minimize disputes and maintain smoother project execution—protecting the interests of both sponsors and lenders.

6. Security and Repayment Based on Project Cash Flows

Project financing thrives on the principle that the project pays for itself. This means that repayment to lenders is sourced exclusively from revenues generated during project operation. Collateral usually includes project assets like land, machinery, licenses, and long-term customer contracts.

Kyna Fintax ensures financial models and loan agreements are structured so that repayment schedules match expected cash inflows—reducing the risk of repayment shortfalls during initial operational stages. We also help establish escrow accounts where all revenues are collected, providing lenders with visibility and control over repayment flows.

By aligning debt servicing obligations with the project’s income patterns, we enhance overall cash flow management and reduce the operational strain on the SPV, ensuring financial stability and long-term sustainability.

7. Benefits of Project Financing

Project financing offers several industry-recognized benefits:

  • Limited Liability – Sponsors’ risk is restricted to their invested equity.

  • Access to Large Capital – Makes financing mega-projects possible without over-leveraging company balance sheets.

  • Risk Sharing – Financial and operational risks are distributed among multiple stakeholders.

  • Improved Governance – SPV structure ensures financial discipline.

  • Flexible Repayment – Long-term schedules aligned with revenue generation cycles.

Kyna Fintax not only facilitates access to these benefits but also ensures they are realized effectively by creating a strategic funding and compliance framework.

8. Role of Financial Modeling and Documentation

Financial modeling is the heart of any successful project financing deal. A robust model details projected revenues, operational costs, cash flows, loan repayment schedules, and investor returns—serving as the primary decision-making tool for lenders and sponsors alike.

Kyna Fintax prepares professional, bank-ready financial models backed by realistic assumptions and market data. We also manage all related documentation: feasibility studies, risk assessments, legal agreements, compliance filings, and lender/investor presentations.

This meticulous approach ensures that your project is not just conceptually viable but also financially persuasive for all stakeholders.

9. Kyna Fintax’s Expertise in Project Financing

Our team brings together deep expertise in finance, taxation, law, and compliance. We understand the unique regulatory and commercial environments in which Indian projects operate—whether private or PPP-based.

We have successfully assisted clients in securing funds from leading domestic and international banks, development finance institutions, and private equity investors. From small renewable energy ventures to multi-crore infrastructure projects, we provide customized financing strategies that maximize feasibility and minimize risk.

10. Why Choose Kyna Fintax for Project Financing Support

  • Proven Success – Track record with diverse industries and funding sources.

  • Tailored Solutions – Customized equity-debt balance based on sector specifics.

  • Strong Network – Relationships with top lenders and investors for faster deal closure.

  • Risk Mitigation – Contracts and structures designed to safeguard sponsor interests.

  • End-to-End Support – From concept to compliance during the entire loan tenure.

When you choose Kyna Fintax, you partner with a team that sees financing not just as a transaction, but as a strategic business enabler—positioning your project for success well beyond financial closure.