Financial Covenants In Project Financing: Key Points

By Emeka Chinwuba and Laura Pettinelli (July 25, 2017, 12:05 PM EDT) -- Project finance is often referred to as limited recourse or non-recourse lending, where lenders primarily look to a specific project being financed and the cash flows generated by such project for repayment of the loans, rather than to the sponsors of the project. Similar to lenders in other forms of financing transactions, project finance lenders typically require that the borrowers agree to certain financial covenants in the loan agreements....

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