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The Main Difference Between Project Finance and Other Forms of Lending

Question 81

Multiple Choice

The main difference between project finance and other forms of lending is:


A) lenders base their participation on expected future cash flows and assets of the project.
B) lenders take a major equity stake in the project.
C) the project company, which is set up as a separate legal entity, relies heavily on venture capitalists for equity funding.
D) the lenders have a claim on the assets of the project as well as the sponsors.

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