Project Finance: Benefits and risks with using this financing structure?
Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Project Finance is a type of financing tool often used in large infrastructure projects. The differences between this financing as opposed to other structures are numerous. Project Finance is always structured either with limited or with no recourse to the sponsors; instead the cash flow potential of the deal itself and the project contracts provide all the security for the banks as opposed to traditional financing where the sponsor has to guarantee the debt. This opens up a whole new side of risk management compared to the more traditional financial structures. Some of these benefits and risks include things like, protection of corporate existence in case of project failure, maximizing potential tax advantages by creation of tax shields, reevaluation of agency problems to mention just a few.
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IdentifiersURN: urn:nbn:se:su:diva-4047OAI: oai:DiVA.org:su-4047DiVA: diva2:193468