Project Finance
Project Financing with the development financial institutions, international commercial banks, Structured Joint Venture Partnership (Private/Public) Funding Programs, Sovereign Wealth Infrastructure Funds and Export Credit/Import Financing Agencies;
A typical SPV Capital approach to a project finance mandate would consist of the following:
01
Borrower Team Due diligence
Agreed financial objectives, Risk analysis, Technical review – “is the Financial Solution (FS) a Best Financial Solution (BFS)?”, Models/scenario analysis, Legal due diligence, Equipment/procurement packages, Advice on JV partnership arrangements
02
Financing Preparation
Information Memorandum, Detailed Financial Modelling, Term Sheet, Independent Engineer’s report, Contingency and cost overrun planning
03
Financier Selection
Beauty parade (price; balance sheet; track record; hedging; team/ability), Negotiate roles, tranches and term sheet
04
Approval Processes
Financier credit preparation, Sensitivity Analysis, Disclosure/consultation period, Mandate letters, Risk approvals
05
Contract Documentation
Third party agreements (including government), Investment/JV agreements, Engineering, Procurement and Construction Management (EPCM) contracts, Offtake
06
Finance Documentation
Negotiate finance documents, Project contracts
07
Closing/drawdown/implementation
Paper the deal, Complete Conditions Precedent (CPs), Get client to first drawdown/investment