Question

In project finance, a 'Special Purpose Vehicle (SPV)' is

Q: Answer-In project finance, a 'Special Purpose Vehicle (SPV)' is created primarily to:

An SPV is a separate legal entity usually a limited company created solely for a specific project. Its primary purposes are to isolate the financial risk of the project from the parent company ring-fencing and to achieve bankruptcy remoteness, meaning the failure of the parent company does not directly impact the SPV and its project.

created primarily to:

A Manage construction

B Isolate financial risk and for bankruptcy remoteness

C Market the project output

D Handle government relations

E Employ the workforce

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In project finance, a 'Special Purpose Vehicle (SPV)' is

Solution