How to Analyze and Use Leveraged Finance Bonds for Project Finance
Introduction
Project finance focuses on the funding of a unique operation as opposed to general funding for a corporation or government. When these projects are privately run, they are usually set up as a separate legal entity with one core asset as its focus. This booklet focuses on private corporate projects, as opposed to government projects.
To analyze project financings, some traditional credit analysis skills are used, but unique work needs to be undertaken, too, and the emphasis is not on the same areas as traditional leveraged finance credit analysis. At the time a project financing plan comes to the leveraged finance market, it typically has no existing cash flow and ...
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