Financing a project or an asset differs significantly from financing an operating company if the only recourse for finance providers is the underlying project or asset.
In project financing, for example, the main distinction is that it provides medium to long-term financing for projects based upon the projected cash flows of the project. The financing is typically secured by the project assets and the debt repayment is sourced from project cash flow with limited recourse to project sponsors.
Our Project Finance Strategy is dedicated to greenfield and brownfield project sponsored by private sector developers or government entities. The strategy also covers projects conducted jointly through public private partnerships (PPPs). PPPs are contractual agreements between public agencies, local authorities or central government, and private companies to deliver a public, social or economic infrastructure project. The contractual cooperation ranges from simple project management and maintenance contracts to sophisticated building, operate, transfer contracts.
The Project Finance Strategy covers the financial aspects necessary for successful projects, including:
- Advising on the right allocation of project risks amongst stakeholders, financing structure, contractual revenues structure and bankability review.
- Arranging and structuring the required financing, from credit to equity capitalization.
Asset Finance Strategy shares the common theme of being limited recourse financing structuring, and it’s widely used in financing assets that are tangible like machinery, aircrafts, equipment, vessels, tankers and intangible like in the case of receivables securitization.
