Advice and support initiatives in project finance
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. Usually, a project financing structure involves a number of equity investors, known as 'sponsors', as well as a 'syndicate' of banks or other lending institutions that provide loans to the operation. They are most commonly non-recourse loans, which are secured by the project assets and paid entirely from project cash flow, rather than from the general assets or creditworthiness of the project sponsors, a decision in part supported by financial modeling. The financing is typically secured by all of the project assets, including the revenue-producing contracts. Project lenders are given a lien on all of these assets and are able to assume control of a project if the project company has difficulties complying with the loan terms.
PF was created as method of financing public projects or private , financially independent , characterized by high financial needs and the possibility of risk distribution among the various participants .
Most used in:
Project financing is carried out under strict monitoring . The role of monitoring and control is critical to quantify the performance of the PF itself.
Nature of the project financing is balanced and weighted : the project must become self-sustaining and therefore do not burden the promoters .
Return on investment
Through sound planning and implementation can allow the PF revenues and benefits superior to the ordinary course of projects by individual promoters .
Project financing is not possible without a solid methodological basis and a strong entrepreneurial know-how . Therefore it is strongly business-oriented .