A capital expenditure or Capex facility, is similar to other tranches of debt, but there are some differences. The first of these is that the debt facility drawn down is specifically for capital expenditure. This means that cash from this facility cannot be used for other purposes, including accelerated repayments of other debt. Now this makes a big difference if you're putting it into a debt schedule with a cash sweep. You need to make sure that any drawdown doesn't flow into the big pile of cash that can be used for accelerated repayments of other tranches. Now the availability and drawdown can be linked to the asset delivery profile. Maybe you're not going to be investing in this capital expenditure for a year or two, therefore, the availability and drawdown can be linked to those years rather than now.

Also, repayment can be linked to income generation. If it's going to take a year or two for you to spend the money before that asset starts making a return, then again, those returns can be linked to those years. Also, if that asset can be sold at the end of the project life, then you can link a large part of the repayment to that period. So Capex facilities can be very flexible regarding that asset, as long as you're only going to spend the money on that asset.