Project financing is

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Project financing is a technique for financing large-scale infrastructure projects, such as power plants or highways. It involves creating a separate legal entity for the project, which can then obtain financing based solely on the projected cash flows of the project. This minimizes the risk for the lenders, as the debt is tied to the success or failure of the project, rather than the overall financial health of the sponsoring company. The assets of the project are also often used as collateral for the financing.

Project Financing Is