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Project If the Project is to Be Funded or Supported, in Fppc Ca  Form

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hello and welcome to project finance modeling course in this lesson we will be talking about what project finance is suppose that an investor has an idea such as building a power plant or airport or a highway these projects are called infrastructure projects and infrastructure projects are expensive to build they are capital intensive projects that require a lot of money it is rare that a single company can finance such large projects with its own money the solution is project finance project finance is basically raising necessary capital to finance such capital intensive infrastructure projects project finance has several distinctive features first it is a long-term debt financing of a specific project the projects assets and cash flows are isolated as the project is incorporated as a special purpose vehicle the project has to generate sufficient cash flows to cover debt repayments and dividends after covering operating expenses and capital expenditures the debt financing raised is se

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