Question One a) Explain the term Project Finance and outline its main features. b) What does the term sponsor mean in the context of project finance literature? Briefly explain your answer. c) List the four main types of sponsors in a project finance deal. d) Briefly explain the goal of each of the four sponsors mentioned in (c) in a project finance deal. e) Briefly present and outline the distinction between a project financing and corporate financing. f) What advantages does a project finance deal offer compared to a corporate finance deal? Explain your answer. g) Company X is a new power generation private company set up by an experienced power industry expert, The Founder. The company was founded with $250m of third-party investment, supplemented by $10m directly from The Founder. The Founder was a very successful executive who worked in a variety of senior roles at several different organisations for over 30 years before setting up Company X. The Founder currently acts as Chair of the Board, Chief Executive Officer (CEO) and Chief Engineer for Company X, as well as owning 25% of the share capital. The company gets an approval from the regulatory authority to exploit a pool of limited coal to produce power and sell/supply to the National electricity company (NEC). This new initiative is handled in the form of a project (SPV) whose estimated lifecycle is 15 years. intends to utilize a combination of long-term debt and common equity financing to cover the costs of the project. i) Explain the following terms. - SPV - offtake agreement ii) How does the offtake agreement mentioned here help to mitigate one of the risks likely to be experienced by Company X?