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Project Finance – Key terms for students

In the next of our π—Έπ—²π˜† π˜π—²π—Ώπ—Ίπ˜€ 𝗳𝗼𝗿 π˜€π˜π˜‚π—±π—²π—»π˜π˜€ series, we look at Project Finance.

Project financing is the long-term financing of infrastructure and industrial projects. It differs from regular financing as it’s based on the future cash flows of the project rather than the finances of its sponsors. The projects involved are often infrastructure projects lasting decades which in many cases are helping countries drive economic growth.