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Because the precedence use of cash movement would be to fund functioning costs also to provider the financial debt, only residual cash after the latter are protected can be utilized to pay for dividends to sponsors enterprise project finance.
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Project Finance is the structured financing of a certain financial entity – a Exclusive Reason Vehicle click this site (SPV) – designed because of the sponsors working with fairness or debt. The lender considers the dollars stream created from this entity as the key source of financial loan reimbursement.
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