General Studies · Project Finance
In Project Financing, the debt is typically structured as a non-recourse or limited-recourse loan, meaning:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The lenders can only pursue the personal assets of the promoters, not the project assets.
- 2The repayment of the loan is primarily dependent on the cash flows generated by the project itself.✓
- 3The lenders have full and unlimited recourse to the parent company's assets.
- 4The project is financed entirely by equity and grants, with no debt.
Correct answer
The repayment of the loan is primarily dependent on the cash flows generated by the project itself.
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