project finance

project finance definition - finance
The arrangement of debt, equity, or credit that is used to construct or refinance a particular building or other capital-intensive facility. Project lenders form their credit decisions based on projected revenues from the facility, rather than from current income, which is usually non-existent. The buildings that are constructed serve as collateral for the debt.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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