Project finance is a form of lending that combines conventional commercial banking’s approach of evaluating a project solely on the basis of the overall picture of the project owner on the one hand with investment banking’s approach of examining projects and assets independently of the firm itself on the other. In recent years project finance has become the preferred method of financing many landmark projects.
With project finance, a financing structure is formulated so that the allocated loan is repaid out of the cashflow that a project creates when it becomes operational. In other words it is the project’s assets and not the project owner’s assets those are treated as the primary source of loan collateral. In project finance, attention is given not to a company’s overall need for credit but rather to the credit needed to finance entirely new or growth-focused investments or to finance undertakings such as a merger, an acquisition, or the purchase of a significant asset.
With its wide-ranged portfolio of project finance and having undertaken many such projects that are the recipients of international awards and recognitions, TSKB ranks among the leading project finance institutions in Turkey.