Project Finance

Project finance funds long term infrastructure, industrial projects, and public services using a nonrecourse or limited-recourse financial structure. The debt and equity used to finance the project are repaid solely from the cash flow generated by the project itself.

“Project finance” refers to financing long term industrial and infrastructure projects, particularly in sectors like oil and gas, power generation, and transportation. It's also used to finance certain economic bodies like special purpose vehicles (SPVs), which are created to manage a single project. The funding required for these projects is based entirely on the projected cash flows.