Introduction
Project finance is a method of raising long-term debt financing for major projects through ‘financial engineering,’ based on lending against the cash flow generated by the project alone; it depends on a detailed evaluation of a project’s construction, operating and revenue risks, and their allocation between investors, lenders, and other parties through contractual and other arrangements. In 2012, at least $375 billion of investments in projects around the world were financed or refinanced using project-finance techniques. This book is intended to provide a guide to the principles of project finance and to the practical issues that can cause the most difficulty in commercial and financial negotiations, based on the author’s ...
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