Abstract "Project financing" refers to those financings whose source of repayment is limited to the revenue stream generated by a particular development. Companies use project financing to (1) raise capital, (2) project financing to (1) raise capital, (2) reduce financial exposure, and (3) reduce capital costs. Project loans can be broken down into three categories based on degree of parent company support. They are (1) total guaranty, (2) project facilities completion guaranty, and (3) limited guaranty. Project financing can be designed to meet a company's exact needs and requirements at a lower over-all financing cost to the company. Introduction Project Financing:How is it define? What are the objectives? What types of project financing are used? What types of companies use project financing? DEFINITION Project financing can be used for many different types of projects, but this paper will be limited to financing paper will be limited to financing techniques used to finance the development of coal, oil, and gas reserves. The terms "project financing" or "project loan" are normally used to refer to those financings whose source of repayment is limited to the revenue stream generated by a particular development. particular development. OBJECTIVES As might be expected, different companies will have different reasons for using project financing, but their principal project financing, but their principal objectives will normally include one or more of the following three:Raise capitalReduce financial exposureReduce capital costs.