A Joint Venture (JV) is organized for the execution of a particular project and is comprised of two or more organizations. It has a legal entity. It is dissolved after the project completion. Such projects are large outlays, having multiple business cycles and numerous cash flows, as per project completion. The JV agreement should delineate the date of the agreement, names, and addresses of the companies involved, the purpose and terms of the JV, the management structure, duties, and responsibilities of all parties involved, sources of funding, and the JV’s own financial statements separate from the participating companies.
The Bank will accommodate financing of JVs based on their agreement even if they are not registered with the respective authorities or do not have JV licenses. However, the Bank shall perform due diligence on individual JV partners. The JV must be properly licensed to be considered for funded facilities.
