22 February 2011
Project finance is the nonrecourse financing of long-term infrastructure, industrial projects and public services based upon a complex financial structure where project debt and equity used to finance the project are paid back from the cashflow generated by the project rather than the general assets or creditworthiness of the project owners. The financing is typically secured by the project assets, including the revenue-producing contracts. Generally, special purpose corporations (SPCs) are created for each project.
Corporate finance is a specific area of finance dealing with the financial decisions corporations make and the tools as well as analysis used to make these decisions. The primary goal of Corporate finance is to enhance corporate value, without taking excessive financial risks.