Equity bridge loan

An equity bridge loan is short-term debt that funds a project or vessel acquisition in place of the sponsor’s equity, repaid when the sponsor injects that equity later. In ship and offshore project finance it lets the borrower draw against committed but undrawn equity, so construction or pre-delivery payments proceed before the owners fund their share. Security is the sponsors’ equity commitment, often supported by an equity contribution agreement or a standby letter of credit, rather than the asset itself. The bridge carries a margin over the benchmark rate and a defined repayment date tied to financial close or delivery.