Page 9 - PowerPoint Presentation

SOURCES AND FORMS OF FINANCE

Project finance (including public-

private partnerships)

• Project finance for large-scale projects often consists of

debt and equity obtained from a multitude of sources.

• Debt finance includes bond finance and debt from

banks, developing finance institutions and aid agencies.

Investors, known as sponsors, often provide some

equity financing.

• Often these sources of finance are then supplemented

by governmental grants.

• It is common practice to create a special purpose entity

for such a project; this entity then owns no other

assets, except for the project. (This may serve to ring-

fence the sponsors in case of project failure.)
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