Projektifinansointi

Projektifinansointi, also known as project finance, is a method of financing for large-scale, long-term projects such as infrastructure, industrial facilities, and power plants. It is characterized by the fact that the financing is secured by the project's assets and expected future cash flows, rather than the balance sheet of the project sponsors. This means that the debt and equity are specifically tied to the project itself, and recourse to the sponsors' general assets is limited.

A key feature of project finance is the establishment of a special purpose entity (SPE), often called a project company, which owns and operates the project. Lenders provide debt financing to this SPE, and equity investors provide capital. The project company then uses these funds to construct and operate the project. Repayment of the debt is primarily dependent on the revenue generated by the project.

Project finance arrangements involve complex contractual structures. These typically include a project development agreement, construction contracts, off-take agreements (for the sale of the project's output), and loan agreements. Risk allocation is a critical component, with various parties involved in the project taking on specific risks based on their expertise and control.

This financing structure is particularly suited for projects with significant upfront capital requirements and long payback periods. It allows sponsors to undertake large ventures that might otherwise be too risky or too large to finance through traditional corporate lending. The non-recourse or limited-recourse nature of project finance is a major incentive for investors, as it protects their other assets.