A way to raise nonrecourse financing for a specific project characterized by the following: (1) the project is a separate legal entity and relies heavily on debt financing and (2) the debt is contractually linked to the cash flow generated by the project.
Debt finance, usually non-recourse, provided by financial institutions for the development and construction of a new project.
involves a corporate sponsor investing in and owning a single-purpose industrial asset – usually with a limited life – through a legally independent entity financed with non-recourse debt.
A loan structure which relies for its repayment primarily on the Project's Cashflow with the Project's Assets, rights, and interests held as secondary security or Collateral.
A form of asset-based financing in which a firm finances a discrete set of assets on a stand-alone basis.
A term indicating the sources and techniques for the financing of major capital projects. Such financing is typically extended on the basis of the project’s expected cash flow rather than on guarantees from third parties. Français: Financement de projet Español: Financiación de proyectos
This is the most commonly used method to finance the construction of independent power facilities. Typically, the developer pledges the value of the plant and part or all of its expected revenues as collateral to secure financing from private lenders.