Project financing

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Project financing

A form of asset-based financing in which a firm finances a discrete set of assets on a stand-alone basis.

Project Financing

A way to finance an activity using debt where the debt is repaid from the funds generated by the activity. For example, project financing may involve issuing a bond to pay for the construction of a museum and repaying it from ticket sales for that museum. Project financing is often very complex and is most common in the telecommunications, utilities, transportation, and mining industries. Very often, a company conducting project finance will set up a different corporation or other entity for the project to shield the remainder of the company from liability if the debt goes into default.
References in periodicals archive ?
Allens also ranked in the top four of the Dealogic tables for legal adviser of global PFI/PPP project finance deals and legal adviser for Asia Pacific project finance deals and comes on the back of the firm winning Asia-Pacific's Transport Deal of the Year for the North West Rail Link PPP project at the 2014 PFI Awards.
Success in oil, gas, and mining lending is increasingly defining banks' franchise in project finance lending," says Tom Nelthorpe, executive editor, IJGlobal.
However, we believe it is too early to tell whether we have reached a tipping point in project finance capital market activity," observed S&P's credit analyst Karim Nassif.
What factors have influenced project finance activity in the GCC over the past few years, and how does Standard & Poor's believe the market will evolve?
Project finance will have to compete with other areas to raise capital in the current economic climate," said Calyon managing director-head of project finance Peter Goodall.
Based upon a complex financial structure where project debt and equity are used in the financing scheme, project finance involves a number of equity investors, known as sponsors, as well as a syndicate of banks which provide loans to the operation.
Project Finance magazine s Deal of the Year Awards recognise the best deals annually and are among the most prestigious awards in the finance industry.
The fact that private sector financial institutions seem unable, as yet, to perform their role of providers of credit indicates that more radical solutions may need to be considered to address the consequences of the credit crunch, he said at the opening session of Middle East Project Finance 2009 conference at the Ritz-Carlton Bahrain, Hotel and Spa.
The figures are released in the Thomson Reuters project finance survey published by Thomson Reuters Project Finance International.
Modeling Project Finance Deals Employing a Learn-by-Doing Approach
The Project Finance Yearbook has been illustrating trends within the market through authoritative editorial and comment for the past 20+ years.

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