What is a Project Finance (PF) Model?
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1 Answer
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A Project Finance (PF) Model is a financial structure used to arrange funding for large-scale projects. Instead of relying on a company's overall finances, the project itself is set up as a separate financial entity. The borrowed money is repaid using the profits generated by the project.
This model is helpful for large projects in which project risk is isolated from the company's core business. If the project goes wrong, the company's other assets remain safe and only the project is hit.
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