Project finance is distinctive from other financings because the providers of the funding

Question

Quizplus · Accepted Answer

Project finance is a type of financing where the lenders or investors look primarily to the cash flow from the project as the source of funds, rather than relying on the creditworthiness of the project sponsors or other parties. This is why project finance is often used for large infrastructure projects, such as power plants or toll roads, where the project's cash flows are expected to be reliable and substantial over a long period of time. In contrast, other types of financing, such as corporate finance, rely more on the overall creditworthiness of the company or parent entity.

Project Finance Is Distinctive from Other Financings Because the Providers