Banking

Project Finance — Construction Drawdown

Funding a tranche of a project finance facility against certified construction progress.

Account NameTypeDebit ($)Credit ($)
Project Finance LoansAsset (+)3,000,000.00-
Cash / Developer AccountLiability (-)-3,000,000.00

💡 Accountant's Note

Project finance loans are drawn in tranches against certified progress. The bank typically appoints a monitoring engineer to certify each drawdown request. Interest during construction (IDC) is capitalized to the loan.

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