LexisNexis Practical Guidance®
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Common features of project finance transactions

The guidance note provides a list of five common features of project finance transactions. It is useful to remember that, due to (for example) the international character of the project finance industry, not every project finance transaction will have every feature, and some may have characteristics not noted in this preliminary list.

The five common features are:

  • the establishment of an independent entity;
  • having a considerable number of participants;
  • having a significant level of debt and a high expected return;
  • non-recourse or limited recourse financing; and
  • allocated risk.

See Common features of project finance transactions.