Project finance is the financing of long-term infrastructure and industrial projects, based on a complex financial structure: project debt and equity finance the targeted project, and debt is refunded by means of the cash flow that the project generates. All of the project assets secure the financing. Project finance employs legal instruments, such as securities, loans, and bond issuance, and it optimises the potential of these instruments. It is carried out through a number of steps: specialised Tunisian institutions (banks, funds) contribute to the financing. In this respect, syndicated credit appears to be banks' favourite financing technique.
January 01 2008