Project finance in Bangladesh involves funding large-scale infrastructure, energy, or industrial projects through a special purpose vehicle (SPV). The financing is typically non-recourse or limited-recourse, meaning lenders rely primarily on the project's future cash flows and assets for repayment, rather than the sponsors' balance sheets. This structure requires complex contractual arrangements between sponsors, lenders, contractors, and off-takers. Meheruba advises on all aspects, including structuring the SPV, drafting facility agreements, security documents, and navigating local regulatory frameworks like Bangladesh Bank guidelines and foreign exchange regulations to ensure the project is bankable and compliant. Our expertise helps clients understand the nuances of Infrastructure & Construction financing and how to manage the associated risks effectively within the Bangladeshi context.

Meheruba provides legal expertise for a diverse range of projects requiring project finance in Bangladesh. This includes critical infrastructure developments such as power plants (both conventional and renewable energy), roads, bridges, ports, and industrial facilities. We also assist with public-private partnership (PPP) projects, ensuring that all contractual arrangements, regulatory approvals, and security packages are robust and align with the interests of all stakeholders, from government entities to private sponsors and international lenders. Our focus is on ensuring these complex, capital-intensive ventures are legally sound from inception to completion, even in challenging scenarios like Restructuring & Insolvency planning for distressed assets.

Legal due diligence is a critical component of any project finance transaction in Bangladesh. It involves a thorough review of all legal aspects of the project, including land titles and acquisition, environmental permits, regulatory compliance, existing contracts (such as concession agreements, EPC contracts, and off-take agreements), and the legal standing of all parties involved. Meheruba conducts comprehensive due diligence to identify potential risks, liabilities, and legal impediments that could impact the project's viability or bankability. Our reports provide clear, actionable insights, enabling lenders and investors to make informed decisions and mitigate risks effectively, ensuring that the project's foundation is solid from a Corporate Law perspective as well.

Developing a robust security package is fundamental to successful project finance in Bangladesh. Meheruba assists clients in structuring and perfecting comprehensive security arrangements that protect the interests of lenders. This typically includes creating charges over project assets (e.g., land, plant, machinery), assignments of project contracts and revenues, pledges of shares in the SPV, and guarantees. We ensure all security documents comply with Bangladeshi law, including registration requirements under the Companies Act and other relevant statutes, and are enforceable in the event of default. Our expertise covers both local and cross-border security considerations for complex financing structures, drawing on our extensive experience in Banking & Finance to provide holistic solutions.