Project Finance Transaction Preparation Checklist

Summary

The term "project finance" refers to the financing of a transaction where the financiers (debt or equity investors) are repaid with the revenues generated by the assets being financed. A project finance structure is typically used when financing an asset that will generate predictable cash-flows for an extended period of time. A classic example of a project finance structure is in connection with an energy generating facility, where the revenues generated by a long-term Power Purchase Agreement between a project developer and a utility or corporate end-user are used to repay debt and/or equity investors.