Project finance refers to monetary solutions that institutional lenders offer companies to fund their infrastructural projects. The financiers agree to provide the necessary resources after scrutinizing the projects’ feasibility and income-generating potential. They are generally willing to accept the projects’ future cashflow estimates as suitable repayments. Moreover, these lenders insist companies set aside their projects’ present assets, title, and rights as collaterals. They also ask for personal guarantees from the board of directors and shareholders of the companies. If the corporate enterprises default on their repayments, the financiers can seize the assets of the project.
