Explain the role of the main counterparties (sponsors) to a concession agreement under a Special Purpose Vehicle (SPV). b) Why is the SPV, sometimes, considered as an appropriate or optimal strategy to execute certain economic activities? Explain your answer. c) Explain why sometimes sponsors prefer using project financing as opposed to using corporate financing. d) Explain the term project finance in the context of our course? e) Outline the main risks associated with project finance. For each risk explain the suitable risk management strategy.
Explain the role of the main counterparties (sponsors) to a concession agreement under a Special Purpose Vehicle (SPV). b) Why is the SPV, sometimes, considered as an appropriate or optimal strategy to execute certain economic activities? Explain your answer. c) Explain why sometimes sponsors prefer using project financing as opposed to using corporate financing. d) Explain the term project finance in the context of our course? e) Outline the main risks associated with project finance. For each risk explain the suitable risk management strategy.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter21: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 13MC
Related questions
Question
Explain the role of the main counterparties (sponsors) to a concession agreement under a
Special Purpose Vehicle (SPV).
b) Why is the SPV, sometimes, considered as an appropriate or optimal strategy to execute
certain economic activities? Explain your answer.
c) Explain why sometimes sponsors prefer using project financing as opposed to using
corporate financing.
d) Explain the term project finance in the context of our course?
e) Outline the main risks associated with project finance. For each risk explain the suitable
risk management strategy.
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