Petrozuata Project Financing
PROJECT FINANCE:
PETROLERA ZUATA, PETROZUATA C.A.
To convince the rating agencies of Petrozuata as an excellent opportunity for the sponsors and potential lenders, the deal structure must effectively mitigate risks associated to whether the project is financed through Project Financing or Debt Financing.
Project Financing
Benefits
- PDVSA can get into a joint venture with a private firm
Higher flexibility from preserved debt capacity
More foreign investments from larger private markets
Reduced corporate taxes, tax rate reductions and tax holidays in project finance deals
Payment of 34% income tax versus 67.7% income tax rate if financed by Maraven
Costs
High cost of political risk insurance would
PETROLERA ZUATA, PETROZUATA C.A.
To convince the rating agencies of Petrozuata as an excellent opportunity for the sponsors and potential lenders, the deal structure must effectively mitigate risks associated to whether the project is financed through Project Financing or Debt Financing.
Project Financing
Benefits
- PDVSA can get into a joint venture with a private firm
Higher flexibility from preserved debt capacity
More foreign investments from larger private markets
Reduced corporate taxes, tax rate reductions and tax holidays in project finance deals
Payment of 34% income tax versus 67.7% income tax rate if financed by Maraven
Costs
High cost of political risk insurance would