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Project finance is the structured funding of a particular economic entity – a Specific Objective Car (SPV) – made via the sponsors applying fairness or debt. The lender considers the funds flow produced from this entity as the major supply of mortgage reimbursement.
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On one other aspect non-revolving debt is in which you borrow cash and then fork out it off above a specific term.
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Since the priority use of cash move is always to fund functioning costs and to support the financial debt, only residual resources once the latter are protected may hop over to these guys be used to pay dividends to sponsors endeavor the project.
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