Project Finance

Project financing is the long-term financing of infrastructure, industrial and utility projects using a non-recourse or limited-recourse financing structure. The debt and equity used to finance the project will be repaid from the cash flows generated by the project. Project financing is a credit structure based primarily on the cash flow of the project to be repaid, with the assets, rights and interests associated with the project serving as secondary security. Project financing is particularly attractive for the private sector because companies can finance large projects off-balance sheet.