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Infrastructure Investing
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Project Finance Fundamentals
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Project Finance
In project finance, why do lenders typically insist on a
ring-fenced SPV
(special purpose vehicle)?
A
Because SPVs guarantee higher project revenues
B
To maximize the sponsor's consolidated EBITDA
C
To isolate project assets/cash flows and enable non-recourse underwriting and security
D
To avoid having any covenants in the financing documents
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