Cofin

Cofin, short for co-financing, is a term used in finance and development contexts to describe a funding arrangement in which more than one party contributes capital to a project. It is not a standardized technical term with a single definition; its precise meaning depends on the contract and the parties involved.

In project finance and lending, cofins are typically organized through a lead arranger or sponsor that structures the financing and allocates portions of the funding to other lenders, investors, or donors. The aim is to spread risk, pool capital from multiple sources, and potentially obtain more favorable terms. Documentation commonly includes a financing plan, intercreditor agreement, and project agreements detailing each participant’s rights and obligations.

Common contexts for cofins include infrastructure, energy, transportation, and public-private partnerships, where governments, development financial institutions, banks, and institutional investors participate as co-financiers. This arrangement can mobilize larger sums of capital and diversify funding risk across participants.

The term is informal; you may encounter it in contracts, donor guidelines, or policy documents rather than as a fixed technical category. When encountered, its specific provisions should be understood from the surrounding documents.