Project Finance

Project Finance
Defined by the International Project Finance Association (IPFA) as the following:

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 cashflow 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.

Investment dictionary. . 2012.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • Project finance — is the financing of long term infrastructure and industrial projects based upon a complex financial structure where project debt and equity are used to finance the project. Usually, a project financing scheme involves a number of equity investors …   Wikipedia

  • Project Finance — Saltar a navegación, búsqueda Project Finance, Financiación de Proyectos o Finanproyecto (traducción adaptada del vocablo inglés) es un mecanismo de financiación de inversiones de gran envergadura que se sustenta tanto en la capacidad del… …   Wikipedia Español

  • project finance — UK US noun [U] (also project financing) FINANCE ► money that is lent to finance investment in a particular project, or the activity of making these loans: »They have raised $163m of project finance for the copper mine. »The bank is interested in… …   Financial and business terms

  • project finance — See …   Law dictionary

  • project finance waterfall provision — USA A discussion of how funds are applied in a typical project finance. Practical Law Dictionary. Glossary of UK, US and international legal terms. 2010 …   Law dictionary

  • project finance — Money or loans put up for a particular project (e.g. a property development), which are usually secured on that project rather than forming part of the general borrowing of the company carrying out the development …   Accounting dictionary

  • Project Finance Loan Program — Program under which banks, the Ex Im Bank, or a combination of both may extend long term financing for capital equipment and related services for major projects. Bloomberg Financial Dictionary …   Financial and business terms

  • project — The asset constructed with or owned via a project financing, which is expected to produce cash flow at a debt service coverage ratio sufficient to repay the project financing. Bloomberg Financial Dictionary * * * ▪ I. project proj‧ect 1… …   Financial and business terms

  • finance — money resources A discipline concerned with determining value and making decisions. The finance function allocates resources, including the acquiring, investing, and managing of resources. Bloomberg Financial Dictionary * * * ▪ I. finance… …   Financial and business terms

  • Finance — A discipline concerned with determining value and making decisions. The finance function allocates resources, which includes acquiring, investing, and managing resources. The New York Times Financial Glossary * * * ▪ I. finance fi‧nance 1… …   Financial and business terms

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”