Project finance is a funding model adopted by project owners to fund capital-intensive projects in public infrastructure, energy, and construction sectors. Unlike traditional financing, project financing is structured around the assets and cash flow of the project without sponsor guarantees.



The past two decades have seen an unprecedented economic boom, especially in emerging economies like China and India. Not to mention, project finance has paved a new wave of global interest and investments in projects that caused this economic boom.



Furthermore, regulatory reforms, improvements in corporate governance, and shifts in government policies for increased private investment have contributed to making the project finance model a preferred choice for long-term mega projects.