Project financing (sjain Ventures) (1)

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Project Financing
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Project financing is a long-term financing of
industrial projects which are based on the cash
flows. It involves a number of investors,
sponsors who provide loans for their tasks.
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Importance of Project Finance

• People need project financing for their major
  work like they can need it for transportation,
  business purposes or it can be individual use
  also.
• In doing all this work, there can be some risks,
  so details about project financings and all
  related terms should be studied.

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Characteristics of project financing

• Long term financing using debts and equity
• Repaid of debt should be done through cash flows
• Project sponsors should be limited
• Debts are given on the basis of priorities

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Stages in Project Financing

• Identification of the project
• Analysing if there is any risk and then
  minimising them
• Technical support
• Negotiation and syndication
• Documents and procedures
• Monitoring of work and its review
• Financial closure stage

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Advantages of Project Financing

• It helps in reducing lender's recourse to the
  sponsors.
• It allows an equity off-balance sheet for debt
  financing.
• Favourable financing should be provided
• Better tax treatment should be obtained for the
  benefit of project.

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For more details,Visit herehttp//sjainventures
.com/