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PFI/PPP
Explained

A Project Explained

Financial Aspects
  Bid Costs
  Project Funding
  Financial Dynamics
  Financial Model
  Shareholder Returns
  Debt Ratios
  Refinancing

Accounting for PFI

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PFI/PPP Glossary

Home > PFI/PPP > Financial Aspects > Refinancing

Refinancing

Refinancing is the process by which the terms of the finance put in place at the outset of a PFI contract are later changed through negotiation with the senior lenders, to create refinancing benefits for both the concessionaire and the public sector authority. The benefits include improved debt terms (such as lower interest rates and longer repayment timescales), and are often achievable as a result of the construction element of the project being completed, thereby removing significant risk from the scheme. The public and private sectors normally share such gains 50:50.

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