International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Project Finance: Determinants of the Bank Loan Spread

This paper proposes an empirical study of the lender’s strategy in the specific context of the Project Finance approach. More specifically we focus on the banks loans as they represent the major part of financing sources. The main goal is to define, through a global analysis, the main factors that have a significant impact on the bank loan cost, called spread. The results have shown that the loan spread in the context of Project Finance is mainly affected by the presence of guarantees and also the level of the country risk.

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