Banking · Infrastructure Financing
Financial closure is treated as a major milestone in infrastructure projects because it signals that required financing support is firmly in place. In practical terms, financial closure most nearly refers to:
- 1Completion of construction and start of commercial operations
- 2Finalization of all debt, equity, and key financing arrangements for implementation of the project✓
- 3Release of the last tranche of term loan after COD
- 4Full repayment of senior lenders and termination of security documents
Correct answer
Finalization of all debt, equity, and key financing arrangements for implementation of the project
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