Bankability of a public private partnership in agricultural sector: A project in Sub Saharan Africa

https://doi.org/10.17221/258/2018-AGRICECONCitation:Morea D., Balzarini M. (2019): Bankability of a public private partnership in agricultural sector: A project in Sub Saharan Africa. Agric. Econ. – Czech, 65: 212-222.
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A public private partnership can be an effective approach to deal the projects with modern agricultural development in Sub Saharan Africa. A former financial analysis of a development project, carried out by the authors, showed that public and private partners can effectively join in a mutually satisfactory venture capital. The same project is now complemented with a bankability study, considering lenders options, equity allocation, collaterals and likely applicable interest rates, available cash flow and sustainable debt service repayment to provide a through financing scenario for each partner’s perspective assessing the relevant Debt Service and Loan Life Cover Ratios. Cash flow and interest rates fluctuation impacts are eventually investigated with a sensitivity analysis to prove the robustness of the proposed scenario.

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