Project finance is the funding of industrial projects, long term infrastructure and public services using a nonrecourse or limited recourse financial structure. Project Finance deals with financial aspects related to a particular project that involves analyzing the feasibility of a project and its funding requirements on the basis of the cash flows that the project is expected to generate, if undertaken, over the years.

Why Investors Use Project Finance

• High leverage
• Tax benefits
• Off-balance sheet financing
• Borrowing capacity
• Risk limitation
• Risk spreading
• Long-term finance
• Enhanced credit