What are the Objectives of Project Finance?

<p><span data-preserver-spaces="true">The main goal of project finance is to raise capital in a way that attracts investors and reduces risks for project stakeholders. To achieve this, project finance focuses on:</span></p><ol><li><strong><span data-preserver-spaces="true">Making the Project Attractive to Invest</span></strong><span data-preserver-spaces="true">ors: Investors&nbsp;look out for secure and profitable investments. Project finance structures must ensure that projects have </span><span data-preserver-spaces="true">clear</span><span data-preserver-spaces="true"> revenue sources and risk management strategies to gain investor confidence.</span></li><li><strong><span data-preserver-spaces="true">Risk Management</span></strong><span data-preserver-spaces="true">: Project finance spreads risks by assigning them to parties best equipped to handle them. For example, contractors usually manage construction risks, while lenders or insurance companies handle financial risks.</span></li><li><strong><span data-preserver-spaces="true">Independent Financial Structure</span></strong><span data-preserver-spaces="true">: Since project finance uses a Special Purpose Vehicle (SPV), the project's assets and debts remain separate from the parent company. </span><span data-preserver-spaces="true">This</span><span data-preserver-spaces="true"> protects the company's overall financial health.</span></li></ol>

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