Question

A lender requires a 'Tail' in a project finance deal. What does this refer to?

Q: Answer-A lender requires a 'Tail' in a project finance deal. What does this refer to?

A Tail is a buffer period. If a loan is for 10 years but the concession is for 12, the 2-year tail provides a safety margin if the project needs to refinance or delay repayment.

A The period between the end of the loan tenor and the end of the concession period.

B The final bullet payment made at the end of the loan.

C The grace period provided for interest payments.

D The extra collateral provided by the sponsor.

E The liquidation value of the assets.

Practice Next

More Financial Management Questions

Consider the following statements about the Index of Industrial Production (IIP) in India: 1.The IIP is a composite indicator that measures the short-term ...
The Prime Minister’s Task Force on MSMEs has set annual lending targets for banks. What is the recommended year-on-year growth in credit and accounts for m...
What is an important aspect of document handling for ensuring confidentiality?
Which of the following is not a major sector that the Gujarat International Finance Tec-City (GIFT City) is expected to serve?
N Ltd. shows his Non-Current Assets of Rs.52, 00,000, Current Assets of Rs.18, 00,000, & Shareholders’ Funds are Rs.43, 00,000. Find out Total Debts of the...
Under the SARFAESI Act, what is the maximum period within which an Asset Reconstruction Company (ARC) is required to resolve an NPA after acquiring it?
The ------ risk arises from non-performance of the trading partners
Who regulates Alternative Investment Funds (AIFs) in India?
Under the Credit Linked Capital Subsidy Scheme for Technology Upgradation (CLCS-TUS), what is the maximum capital subsidy that a Micro or Small Enterprise ...
Consider the following financial data for a business unit: Total Stock = ₹100 Lakhs; Creditors = ₹40 Lakhs; Bank Margin on Stock = 25%. If there are no deb...

Relevant for Exams:

IIFCL Grade A/B

Hey! Ask a query

A lender requires a 'Tail' in a project finance deal. What does this refer to?

Detailed Solution

More Financial Management Questions

Relevant for Exams:

Hey! Ask a query

Please Register/Login