Advantages and Disadvantages of Project Financing | Practical Law

Advantages and Disadvantages of Project Financing | Practical Law

This Practice Note discusses key advantages project financing, including limited recourse to the project sponsor, allocation of project risk, and lower default risk. This Note also discusses certain key disadvantages of this structure including greater complexity and higher transaction costs.

Advantages and Disadvantages of Project Financing

Practical Law Practice Note 0-382-8846 (Approx. 10 pages)

Advantages and Disadvantages of Project Financing

by Practical Law Finance
MaintainedUSA (National/Federal)
This Practice Note discusses key advantages project financing, including limited recourse to the project sponsor, allocation of project risk, and lower default risk. This Note also discusses certain key disadvantages of this structure including greater complexity and higher transaction costs.