Project finance is a special art of lending to support borrowers’ investments in renewing their current and non-current assets. In such type of transactions a lender and an investor appeal to either non-recourse or limited recourse financing to ensure cash flow generation from the project in order to repay the loan.
The project finance has long–term tenor and its structure is normally designed to optimise the cost of finance for the project, respectively for an investor.
These two important drivers should obviously motivate an investor to use this sort of lending by offering it a credit product which permits to update equipment’s park, production facilities, infrastructure and etc.