Project Finance refers directly to the limited recourse project. Funds required are raised on the project's potential income stream and paid back through project revenues.
in addition to trade financing, there is also project financing which provides longer term loans to overseas projects. This often brings together a large number of investors, from commercial banks, regional development banks such as the Inter American Development Bank (IDB), the World Bank Group or export credit agencies (such as Export Development Canada) where the project sponsor is from the ECA country. The initial provision of equity to a project by one of these investors often helps to attract additional financing from other investors.
The business of financing large, infrastructure facilities, such as power generation plants, airports or industrial complexes
Used variously by financial institutions to mean: Finance made available to be repaid by revenue derived from a project. Corporate lending.
Financing method in which the lender mainly examines the profitability of one single project both as a source of reimbursement and as a guarantee of the loan. This type of loan is generally destined to large, complex and expensive infrastructure projects, for example in the energy, chemical, mining, transport, environmental and telecommunication sectors.
Off-balance sheet financing of a power plant, infrastructure or other project.
Project finance is the nonrecourse financing of long-term infrastructure, industrial projects and public services based upon a complex financial structure where project debt and equity used to finance the project are paid back from the cashflow generated by the project rather than the general assets or creditworthiness of the project owners. The financing is typically secured by the project assets, including the revenue-producing contracts. Generally, special purpose corporations (SPCs) are created for each project.