This video highlights the security documents and direct agreements that enable project lenders to take control of projects, even if this may be a relatively rare, "last resort" scenario. These security measures, which are specific to project finance when compared to other types of finance, instil in lenders a sense of assurance that the relevant risks are manageable and that their level of residual exposure is acceptable.
Key learning objectives:
What are the key elements involved in project finance?
Understanding why security is such a vital consideration for lenders
What are project revenues?