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The lenders’ recourse is Therefore constrained principally or solely on the project’s assets, which include completion and efficiency ensures and bonds, in the event the project company defaults.

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Project finance may be the technique to increase extended-term debt funding for large projects via a confined recourse or non-recourse monetary program. It aids in developing a rewarding structure and delimiting the shareholders’ pitfalls by means of risk diversion to other get-togethers.

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