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United Kingdom
Key definition
Debt financing definition

What does Debt financing mean? debt financing describes raising capital for a business, project or acquisition by borrowing or issuing debt instruments, to be repaid (usually with interest) on agreed terms. It includes loans (bilateral, club or syndicated), revolving credit facilities, term loans, commercial paper, private placements, medium‑term notes and bonds/debentures, including subordinated or convertible instruments. Key features typically include: fixed or floating interest, maturities and amortisation schedules, financial and negative covenants, events of default, guarantees, security (or unsecured lending), subordination and intercreditor arrangements governing ranking, enforcement and payment waterfalls. The term is a descriptive expression used across corporate, acquisition, real estate and project...

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Project finance transactions: lawyers’ step-by-step guide from procurement and feasibility to due diligence, syndication, documentation and financial close

Practice notes
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Most projects rely on some measure of debt finance. The borrowing portion of a project’s funding is commonly known as ‘project finance’. Although no two project finance deals are identical, there are core stages that are essential to obtaining funding. This Practice Note outlines those key stages.

Bid/feasibility studies

The earliest steps in a project’s lifecycle vary according to whether the scheme is publicly procured (ie initiated by a government or other public body) or privately originated. In both scenarios, sponsors typically approach prospective project finance lenders only once the bidder has been shortlisted (where applicable) and after the relevant feasibility studies have been undertaken (see Practice Note: Project finance—due diligence and ‘bankability’—Technical due diligence/feasibility study in project finance transactions).

Publicly procured projects

In the UK, public procurement regulations require certain ‘contracting authorities’, including central government and its agencies, to run an open, formal competitive process to secure bids for specified goods and services (see Practice Note: Introduction to public contracts procurement)...

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Web page updated on 21/05/2026

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