EFL offer project finance through the use of Special Purpose Vehicles (SPVs), which are created specifically to carry out the project. The SPV serves as a distinct entity and absorbs both the project’s risks and cash flows. This distinct separation shields project sponsors from financial liabilities associated with the project. Investors, typically a mix of banks, private equity firms, and institutional investors, are drawn to project finance due to its structured nature and potential for stable, long-term returns. EFL offer Project finance, relying predominantly on the projected cash flows of the project rather than the balance sheets of the sponsors. Fundamentally, project finance is distinct from traditional financing methods due to its dependency on non-recourse or limited-recourse loans, meaning that lenders are repaid solely from the project’s cash flow, without recourse to the project sponsors’ other assets. This enable the execution of ventures that may be too capital-intensive or risky for firms to undertake using conventional debt. By isolating project risk from corporate risk, project finance presents an attractive avenue for financing large-scale projects such as toll roads, power plants, and pipelines. Each financing arrangement is meticulously tailored, often involving a combination of debt and equity, to ensure that both debt holders and equity investors achieve a satisfactory return on investment.