Special Purpose Vehicle: SPV- Characters in Project Finance
Special Purpose Vehicle: SPV- Characters in Project Finance Special Purpose Vehicles (SPV ) have become an integral part and a key link in the implementation of large investment projects under the project finance model, playing an important role in public-private partnerships Special purpose vehicle SPV was first surfaced in the middle of first twentieth century, spreading around the world thanks to the global economic transformation of recent decades. Initially, SPV (Special Purpose Vehicle) was seen as a joint venture created by partner companies to implement projects with minimization of financial responsibility and risk. Today, special project companies are widely used in project finance (PF) schemes, financing capital-intensive projects in the framework of public-private partnerships, as well as in various asset securitization schemes. Typically SPV / SPE is created as a legally independent subsidiary that serves the specific economic goals of the parent company and is fully...