The Study On The Legal Issues Of International Project Financing Floating Charge

International project financing is a unique financing method for investors to invest in a large-scale engineering project,with the assets of the project as the guarantee and the future cash flow of the project as the main source for repaying the loan.Compared with traditional financing methods,it has particularity and superiority in both its financial structure and management mode.International project financing originated from western developed countries in 1930 s,and has been widely used in the construction and operation of large-scale projects all over the world in recent decades,especially in developing countries.The smooth development and normal operation of international projects mainly depend on the support of the local government and the loans of international syndicates.However,the feasibility of project development,the profit expectation of the project and the credit enhancement measures that the sponsors or project stakeholders may provide,directly affect whether the lenders provide financing to the project company.It can be seen that in international project financing,financing risk control and credit guarantee are extremely important components,and they are the firewall of project financing security,which directly affects the lender’s investment security and the realization of creditor’s rights.Therefore,the design and application of project financing guarantee system has become one of the primary concerns of lenders.In the system of project financing guarantee,the providers of financing guarantee are mainly the project company,shareholders of the project company,host country and guarantee company,and the common guarantee methods mainly include floating charges,government comfort letter,negative guarantee,mortgage,pledge,guarantee,etc.With the economic globalization,the financing and lending market is extremely active,and the demand for international project financing is increasing day by day,floating guarantee is the most frequently used guarantee measure in international project financing.Guarantor’s right of free disposition and its limitation,normal operation and guarantee property "crystallization",legal application and conflict of laws of floating guarantee must be carefully considered by project investors,lenders and project stakeholders.From a legal point of view,this paper analyzes the legal characteristics of floating guarantee for international project financing and the advantages and disadvantages of its practical application,and then combs and analyzes the establishment of floating guarantee,"crystallization",guarantor’s right of free disposition and its restrictions in practice.Finally,based on the judicial precedent and practice,this paper puts forward the problems of legal application and conflict of laws.The article consists of three parts: introduction,text and conclusion,in which the text is divided into four chapters.The first chapter mainly introduces the definition,legal characteristics,practical application,advantages and disadvantages of floating guarantee for international project financing.The second chapter analyzes and studies the legal problems of the establishment of floating guarantee for international project financing from the perspective of the establishment of civil legal relationship;The third chapter further analyzes the legal problems of the implementation of floating guarantee for international project financing;Finally,on the basis of judicial precedent and practice,it points out the conflict of laws and the application of floating guarantee in international project financing.