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Finance & Banking vocabulary · Corporate Finance

Project finance

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, project finance means: Long-term financing for a large project, such as a power plant or motorway, in which the loan is repaid mainly from the project's own future cash flows.

In Turkish: proje finansmanı

How it is used

Used in corporate banking, energy and infrastructure. The project is usually placed in a special purpose vehicle (SPV), and lenders rely on contracts, cash flow forecasts and security over the project's assets. Deals have long tenors and grace periods. Public-private partnerships (PPP) are often financed this way.

Example sentences

  1. The wind farm was built with project finance from a group of local and international banks.

  2. Our project finance team reviews the traffic forecasts before lending to a toll road.

Common collocations

  • project finance loan
  • non-recourse project finance
  • special purpose vehicle
  • project finance team
  • syndicated loanA large loan provided by a group of banks together under one agreement, so that no single bank takes all the risk.
  • grace periodA period at the start of a loan when the borrower does not have to repay principal, or extra time after a due date before penalties apply.
  • cash flowThe movement of money into and out of a business over a period. Positive cash flow means more money is coming in than going out.
  • corporate bankingBanking services for large companies, such as loans, cash management, trade finance and foreign exchange.
  • covenantA promise in a loan or bond agreement that the borrower will or will not do certain things, such as keeping its debt below a set level.

More terms: Corporate Finance

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This page explains English vocabulary for learners. It is not financial advice.