Project finance is a method of funding large-scale asset heavy projects such as Renewable Energy Projects, infrastructure, other energy production plants, and natural resource development, that require significant upfront investment.
In project finance, funding is typically raised through a combination of equity and debt, with the project’s cash flows serving as collateral for the debt.
One of the key features of project finance is the limited recourse nature of the debt. This means that lenders can only look to the project’s assets and cash flows to repay the debt, instead of the assets and cash flows of the project sponsors. This can help to reduce the risks associated with the project and provide lenders with greater security.
BWC will help prepare for negotiations with lenders to leverage debt for your project.