CKB

Project financing

  • Project financing generally applies to the financing of projects in energy industry, infrastructure, telecommunications, real estate sector and certain investments in the society.

Product description

Project financing is a special type of banking service that in line with international practice is separated from standard corporate credit arrangements due to its financial structure, high capital leverage, security structure and revenues.


Project financing generally applies to the financing of projects in energy industry, infrastructure, telecommunications, real estate sector and certain investments in the society.


A company applying for this loan must provide the Bank with information on the project, project sponsors and borrower, with special focus on:


  • the borrower, if the company is already established: corporate documents, annual financial statements, trial balance, available information on the company, tax certificates related to public obligations or, in case the borrower is newly founded company: initial balance;
  • in case of a loan for purchase, and related to target company: corporate documents, annual financial statements, trial balance, available information on the company, tax certificates related to public obligations;
  • with respect to project sponsor: available information on the company, annual financial statements, references, company rating issued by credit rating agencies;
  • detailed budget, technical plan and planned investment schedule;
  • financial plans prepared by the client;
  • feasibility study and market study prepared by independent experts, if possible;
  • information memorandum, if available (basic client information);
  • planned contracts or already signed contracts related to the project;
  • construction permits and other permits and appropriate information;
  • other information related to the project and other documentation for corporate clients in accordance with CKB Credit Policy.

Project financing is used in cases where primary source of debt servicing is cash flow deriving from the project implementation. In case of project financing, security instruments are usually related to project assets, as well as all rights and obligations connected with the project. This type of financing may be extended to newly founded companies whose core activity is project management and implementation (the so-called "special purpose vehicle, as well as to going concerns.


This is a new product on the Montenegrin banking market. Crnogorska Komercijalna Banka was the first to offer it in 2007 and still is the only bank in Montenegro offering this product.

Product price

Lending terms and conditions for project financing are defined in the process of communication with the client and mostly depend on characteristics of the project activity and subsequent transactions, and particularly expected cash flow during the project implementation. Interest rates may be fixed and variable.

How to apply for a loan?

A company applying for this loan must provide the Bank with information on the project, project sponsors and borrower, with special focus on:


  • the borrower, if the company is already established: corporate documents, annual financial statements, trial balance, available information on the company, tax certificates related to public obligations or, in case the borrower is newly founded company: initial balance;
  • in case of a loan for purchase, and related to target company: corporate documents, annual financial statements, trial balance, available information on the company, tax certificates related to public obligations;
  • with respect to project sponsor: available information on the company, annual financial statements, references, company rating issued by credit rating agencies;
  • detailed budget, technical plan and planned investment schedule;
  • financial plans prepared by the client;
  • feasibility study and market study prepared by independent experts, if possible;
  • information memorandum, if available (basic client information);
  • planned contracts or already signed contracts related to the project;
  • construction permits and other permits and appropriate information;
  • other information related to the project and other documentation for corporate clients in accordance with CKB Credit Policy.