Project Financing
What We Do
Our Project Financing practice advises developers, sponsors, and financiers on the structuring and financing of residential, commercial, and infrastructure projects. We provide legal advice across the full spectrum of project financing transactions, supporting projects from early‑stage planning through financing documentation, implementation, and completion.
Our experience includes advising on conventional and Islamic financing structures, real property‑backed and project‑based financing, and funding arrangements linked to construction and development projects. We combine a detailed understanding of financing documentation with regulatory and transactional insight, enabling us to structure financing solutions that address project‑specific risks and commercial objectives. The practice focuses on delivering practical, coordinated advice that supports efficient execution within Malaysia’s legal and regulatory framework.
How We Can Assist You
We advise clients throughout the project financing lifecycle, from initial structuring and funding strategy through documentation, regulatory compliance, and financial close. Our work includes advising on financing structures, negotiating and drafting facility and security documentation, and coordinating conditions precedent and drawdown requirements.
We regularly work alongside developers, contractors, and financiers to address legal and commercial issues arising from construction timelines, cash‑flow requirements, and project risks. Our integrated banking, construction, real estate, and regulatory capabilities allow us to provide coordinated advice on complex project structures. Throughout each engagement, we focus on delivering clear, commercially grounded legal solutions that support timely funding, risk management, and successful project delivery.
FAQs
What is project financing and how is it structured?
Project financing is a financing method where repayment is primarily derived from the cash flows generated by a specific project. It is typically structured on a limited or non-recourse basis, with lenders relying on project assets, contracts, and revenue streams rather than the sponsors’ balance sheets.
What types of projects commonly use project financing in Malaysia?
Project financing is commonly used in infrastructure, energy, transportation, and large-scale development projects. These sectors involve significant capital expenditure and long-term revenue streams, making them suitable for structured financing arrangements.
What are the key documents in project financing transactions?
Key documents include financing agreements, security documents, concession agreements, construction contracts, and operation and maintenance agreements. These documents collectively allocate risks and define the rights and obligations of the parties involved.
What is a concession agreement in project financing?
A concession agreement is a contract between a government or authority and a private entity granting rights to develop, operate, and maintain a project for a specified period, often subject to regulatory oversight and performance obligations.
What is limited recourse financing?
Limited recourse financing restricts lenders’ claims primarily to the assets and cash flows of the project. Sponsors’ liability is limited, making risk allocation and contractual protections critical in structuring such transactions.
What risks are involved in project financing?
Risks include construction delays, cost overruns, operational issues, regulatory changes, and market fluctuations. These risks are typically allocated among project participants through contractual arrangements to ensure bankability.
How are risks allocated in project financing?
Risks are allocated through contracts among stakeholders, including sponsors, contractors, and lenders. For example, construction risk may be allocated to contractors, while operational risks may be borne by operators under long-term agreements.
What is a security package in project financing?
A security package typically includes charges over project assets, assignment of project contracts, accounts, and insurance proceeds. It may also include step-in rights, allowing lenders to take control of the project under certain circumstances.
What is financial close in project financing?
Financial close occurs when all financing agreements are executed, conditions precedent are satisfied, and funds become available for drawdown. It marks the point at which the project is fully funded and ready for implementation.
What role do government support measures play in project financing?
Government support, such as guarantees, subsidies, or regulatory approvals, can enhance the bankability of a project by reducing risks for lenders and investors. The extent of support varies depending on the nature and strategic importance of the project.
Why We Stand Out
Quality
Personalized service from a focused team of lawyers, capable of handling complex, high-value transactions. Agile and client-focused, offering premium expertise without the bureaucracy of larger firms.
Experience
Extensive experience engaging with government-linked companies (GLCs), public-listed companies (PLCs), and private corporations across diverse industries.
Strong capability in handling compliance-heavy projects, corporate governance, and large-scale infrastructure or financing transactions.
Global
Active involvement in LAWorld, a non-exclusive international legal network of nearly 70 independent mid-sized law firms across 100 cities worldwide.
This membership gives MRCO clients instant access to vetted foreign counsel, local expertise, and seamless support for cross-border transactions and disputes.
Digital
MRCO operates as a digitally forward firm, utilizing modern cloud tools and cutting-edge hardware and software. Its meeting rooms feature the latest meeting tools to ensure seamless connectivity, reflecting the absolute commitment to legal innovation in Malaysia today.
Sustainable
MRCO is an ESG-driven law firm, embedding sustainability principles into its daily operations and legal advice.
Actively developing ESG clauses across multiple practice areas and guiding clients toward sustainable business practices aligned with global standards.