@article {Parra49, author = {Robert J. Parra and M. Fouzul Kabir Khan}, title = {Layered Finance}, volume = {7}, number = {3}, pages = {49--60}, year = {2001}, doi = {10.3905/jsf.2001.320258}, publisher = {Institutional Investor Journals Umbrella}, abstract = {The general objectives of subordinated debt in project finance transactions are to mitigate risk for senior lenders and to mobilize a higher aggregate level of project debt than is otherwise justified by the project{\textquoteright}s underlying cash flows. This article focuses primarily on three purposes of debt subordination in project finance, 1) replacement by project sponsor or other {\textquotedblleft}insider{\textquotedblright} of equity with debt, 2) provision by other {\textquotedblleft}investors{\textquotedblright} of equity-like capital on a hybrid basis, and 3) promoting the participation of senior lenders by improving the margin of debt service coverage.}, issn = {1551-9783}, URL = {https://jsf.pm-research.com/content/7/3/49}, eprint = {https://jsf.pm-research.com/content/7/3/49.full.pdf}, journal = {The Journal of Structured Finance} }