Project Finance
What is Project Finance?
Benefits of Project Finance
Access to Large Scale Capital: Enables the financing of projects requiring large amounts of capital that would not be available through conventional financing.
Risk Sharing: Risks are distributed among the different project participants, which may include construction contracts, operation and maintenance agreements, and insurance.
Leverage: Companies can use financial leverage without significantly increasing their corporate debt levels.
Everything you need to know about Project Finance
Structured Finance: Financing is organised around the projected cash flows and assets of the project, not the balance sheet of the sponsors.
Risk Sharing: Risks are distributed among the different project participants, which may include construction contracts, operation and maintenance agreements, and insurance.
Multi-Stakeholder Involvement: Involves various stakeholders, including sponsors, lenders, investors and insurance providers.
FAQ’s
Infrastructure, renewable energy, large real estate developments and other large-scale projects.
Through a separate entity (SPV – Special Purpose Vehicle) that manages the project and the financing.
Investors bear a large part of the risk, but the developer may also be affected.
Generally, the project itself acts as collateral.
