Defined by the International Project Finance Association (IPFA) as the financing of long-term infrastructure, industrial projects and public services based upon a non-recourse or limited recourse financial structure where project debt and equity used to finance the project are paid back from the cash flow generated by the project. In other words, project financing is a loan structure that relies primarily on the project’s cash flow for repayment, with the project’s assets, rights, and interests held as secondary security or collateral.
Project finance is especially attractive to the private sector because they can fund major projects off balance sheet.
- Structured Finance.
- Asset Finance.
- Debt Finance.
- Trade Finance.
- EPC Finance.
- Mezzanine Finance.
- Joint Venture.
- Bank Instruments.
