GLOSSARY

Project Financing

Project finance is the long-term financing of infrastructure and industrial projects based upon the projected cash flows of the project rather than the balance sheets of its sponsors.

What is Project Financing?

Project finance is the long-term financing of infrastructure and industrial projects based upon the projected cash flows of the project rather than the balance sheets of its sponsors. It is financing wherein the lender looks to a project's cash flows to repay the principal and interest on debt, and to a project's assets for security; also known as "structured financing" because it requires structuring the debt and equity such that a project’s cash flows are adequate to service the debt.

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