The Pledge Of Ownership Interest In The Project Finance

Project finance is one of the important models of finance support provided by bank for enterprise "go out". It highly embodies bank's capabilities of sorts of risks understanding, management and control. As high risk has it, the bank usually require all sorts of capitals including movable, real property, patent and other contract rights belong to himself via mortgage, pledge or the third party guarantee in order to more safely protecting the benefit of the bank. Meanwhile, As a base proceeding for guarantee arrangement, The financing bank also require the shareholder who hold the project company's share pledge their share in the company, for the sake of effective control risk of the whole project. This article talks from the common guarantee models and the legal concept of pledge stocks rights, and stress analyze the necessarily, effect and the concrete arrangement of the stocks rights pledge, in order to demonstrate the important of the stocks rights pledge in the project finance risk control and give some advice on how to arrange the stocks rights pledge to the reader.