A) WITH THE INFORMATION YOU'VE HEARD IN THE VIDEO, ANSWER THE FOLLOWING QUESTIONS:

https://www.youtube.com/watch?v=X4u55CNa1g&list=PLhs9HYx9Qbyi1JlJRFdkGyklYmp5t7pIN

1. What is Project Finance?

Project finance is basically raising necessary capital to finance such capital
intensive infrastructure projects.
Project Finance is a financial structure used to fund long-term infrastructure
or industrial project using a non-recourse financial structure, which relies
only on the project´s cash flows for debt repayment, with the project´s
assets held as a collateral.

2. What does distinguish Project Finance from traditional corporate

finance?
In corporate finance investors and lenders inject capital into a holding
company which then initiates multiple different projects, these different
projects serve as a collateral for the debt. In case there´s problem with debt
repayment or interest payments the lenders can go after all the assets of
the holding company and recover the debt through sale of those assets that
the holding company.
In project finance the project sponsor can have multiple SPV (Special
purpose vehicle), with a specific project in each and project sponsor can be
a holding company too and when there is a problem with the specific
project the lenders can´t go after project sponsors other assets. They must
rely on the assets and cash flows that specific SPV.
3. What is the name of the society that designs creates and manages the
project?
SPV (Special Purpose Vehicle): Which is a legal entity created solely for the
purpose of carrying out the project.

4. What type of projects does the project finance apply to?

Project Finance applies to large-scale infrastructure projects such as power
plants, highways, airports, seaports, renewable energy projects, oil and gas
exploration, mining, telecommunications, water treatment plants, and
other similar projects. These projects typically require significant upfront
capital investments and have long-term revenue streams, making them
suitable for Project Finance structures.

5. What are the 4 sectors in which most of the projects are framed?
- Infrastructure. - Real estates.
- Energy. - Environment.

6. How is the evolution of the market and the sector?

The evolution of the market and the sector of Project Finance has been
positive in recent years. There has been an increasing number of private
investors and financial institutions participating in Project Finance deals.
This is due to the growing demand for infrastructure development,
particularly in emerging markets, and the need for long-term financing
solutions. Additionally, there has been a trend towards more innovative
and complex financing structures, such as public-private partnerships
(PPPs) and hybrid financing models. Overall, the market and sector of
Project Finance are expected to continue growing in the coming years,
driven by the need for sustainable infrastructure development and the
increasing availability of financing options.
7. Why is project finance the most used financial techniques by private
sectors in supporting infrastructure projects?
Project Finance is the most used financial technique by private sectors in
supporting infrastructure projects because it allows them to finance large-
scale projects without putting their own balance sheets at risk. Additionally,
Project Finance provides a way to share risks among multiple parties, which
can make it easier to attract financing.

B) READ THE FOLLOWING ARTICLE AND ANSWER THE FOLLOWING QUESTIONS

https://www.bbva.com/en/sustainability/meridiam-formalizes-the-worlds-first-electric-vehicle-project-
finance-with-bbva/

8. What project does the article study?

The article studies the world's first electric vehicle project finance, which
was formalized by Meridiam and BBVA.

9. Where does the project stand in the European union's commitment?

The project stands in the European Union's commitment to reduce carbon
emissions and promote sustainable transportation.

10. What is bbva's commitment?

BBVA's commitment is to align its activity with the Paris Agreement and to
mobilize €100 billion in sustainable financing by 2025.

11. What are the eight decarbonization issues that the bank will prioritize?
- Electricity generation. - Transportation.
- Industry. - Innovation related to oil and gas.
- Buildings. - Agriculture.
- The circular economy. - Carbon markets.