Limited recourse project financing has the following characteristics: first, the project company is a legal entity independent of its sponsors, the lender provides most of the funds needed for the project, usually accounting for 65%-75% of the total project construction, and the rest is invested by the project sponsors or solved by other means; Second, the project company is directly responsible for repaying the loan, and the project sponsor only provides limited guarantee or guarantee; Third, other third parties, such as suppliers, buyers or related institutions of project products, undertake the obligation to provide credit support to lenders; Fourth, the debt of the project is not reflected in the balance sheet of the sponsor and belongs to off-balance sheet financing. That is to say, a loan or guarantee provided for a loan is put on the cloak of "commercial transaction" and treated as a commercial transaction, so as to achieve the purpose of not including such a loan or guarantee transaction in the balance sheet of the sponsors. (P3 10)

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Knowledge points of this topic: international commercial loans,