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What are the typical ownership structures for project companies in your jurisdiction? Does this vary based on the industry sector?
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Are there are any corporate governance laws or accounting practices that foreign investors in a project company should be aware of?
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If applicable, what forms of credit support from sponsors or host governments are typically provided?
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What types of security interests are available (and suitable) for a project financing in your jurisdiction?
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How are the above security interests perfected?
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Please identify how security is enforced (notably the enforcement options available for secured parties) both pre and post insolvency/bankruptcy of the project company?
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What are other important considerations in relation to the security regime in the jurisdiction that secured parties should be aware of?
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What key project risks should lenders be aware of in project financings in your jurisdiction? This may include, but may not be limited to, the following risks: force majeure, political risk, currency convertibility risk, regulating or permitting risk, construction/completion risk, supply or feed stock risk or legal and regulatory risk).
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Are any governmental / regulatory consents required and are any financing or project documents requirement to be filed with any authority in order to be admissible in evidence in a court of law, valid or enforceable?
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Are there are any specific foreign exchange, royalties, export restrictions, subsidies, foreign investment, that are relevant for project financings (particularly in the natural resources sectors)?
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Please set out any specific environmental, social and governance issues that are relevant. For example, are project companies subject to certain ESG laws, reporting requirements or regulations?
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Has any public-private partnership models or laws been enacted in the jurisdiction, and if so, are they specific to certain industry sectors?
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Will foreign judgments, arbitration awards and contractual agreements to arbitrate be upheld?
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Is submission to a foreign jurisdiction and waiver of immunity effective and enforceable?
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Please identify what you consider to be (a) the key current issues for project financing in your jurisdiction; and (b) any emerging trends or topics which should be considered or focused on by project financing stakeholders.
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Please identify in your jurisdiction what key legislation or regulations have been implemented (or will / plan to be) for projects in connection with the energy transition?
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Please identify if there are any material tax considerations which need to be taken into account for a project financing in your jurisdiction, and if so, how such tax issues can be mitigated.
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What types of funding structures (e.g. debt, equity or alternative financing) are typical for project financing in your jurisdiction. For example, are project bond issuances, Islamic finance and – in the context of mining deals – streams or royalties, seen as attractive (and common) options for stakeholders?
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Please explain if there are any regional development banks or export credit agencies, and if so, what is their role in project financing in your jurisdiction and beyond.
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Please explain if there are any important insurance law principles or considerations in connection with any project financing in your jurisdiction.
Cayman Islands: Project Finance
This country-specific Q&A provides an overview of Project Finance laws and regulations applicable in Cayman Islands.