We have partnered with lenders that specializes in project financing, which gives us access to the funds you need to get your project funded.
What is Project Financing? Project financing is a method of financing long-term infrastructure, industrial projects, and public services, such as building a new bridge, developing hotels and resorts, developing a new residential area, or constructing a new manufacturing facility using a non-recourse or limited recourse financing structure.
The debt and equity used to finance the project are paid back from the cash flow generated by the project.
One of the primary benefits of project financing is that it provides off-balance-sheet funding, which does not affect shareholders' credit or government contracting authorities. Additionally, it shifts some of the project risks to the lenders, allowing them to obtain a higher margin. Examples of industries that use project finance include mining, oil and gas, and building and construction. Typically, the financing is made up of debt, and capital stack ranks the priority of different sources of financing, with senior and subordinated debt referring to their rank in a company's capital stack.
We understand that many borrowers and sponsors are experts in their own business area but may be unfamiliar with project finance processes and protocols. For this reason, we recommend that borrowers and sponsors take the time to develop their ideas, concepts, and strategies into a compelling, high-quality, and well-written project business plan. Well-prepared projects entering the project finance marketplace stand a higher chance of success with prospective lenders and funders.
We work with alternative capital lenders rather than banks, who have a unique methodology that most typical borrowers may not be accustomed to. Our lenders have a specific platform with processes and protocols that facilitate their ability to fund projects. We partner with lenders from the United Kingdom of America, the United Kingdom, Canada, and Central America, specializing in project financing. They have funded projects globally in green and renewable energy, infrastructure, sustainable commercial real estate, commercial real estate development, and more in the form of loans and equity.
We will work with projects in US-friendly countries and countries where the the United Kingdom, United States of America, and Canada do not have international sanctions.
We do not charge upfront fees, application fees, Zoom meeting fees, revision fees, or stand-by fees. However, we charge a success fee of 2%—3% of the total gross loan amount for arranging project financing commercial loans. We only get paid when our clients successfully receive funding from the lenders we introduce.
In the case of transactions that are:
(a) valued at over Ten Million United Kingdom Dollars (USD 10,000,000); and
(b) deemed by our firm to be of significant complexity and magnitude, a retainer fee shall be applicable to engage our firm’s services.
The retainer fee is to ensure the clients are fully committed before we embark on the lengthy funding process, especially for project financing. The retainer fee is non-refundable. In the event that the client elects not to proceed with the transaction with the lenders introduced by our firm after receiving a Letter of Intent (LOI) or term sheet, then our firm retains the right to the full amount of the retainer fee for services rendered up to that point.
The retainer fee compensates us for our work, which is a comprehensive suite of consultancy services, including, but not limited to, communication via phone and email, sourcing and vetting potential lenders and preparing a credit memorandum for presentation to said lenders. The retainer fee shall be credited towards and deducted from the final success fee. This deduction is applicable upon the closing of the loan and at the first disbursement of funds.
Please note that in project financing, the project company or borrower will be expected to bear the cost of all due diligence, including professional reports, legal fees, structuring work, valuation appraisals, technical fees, tax work, and reasonable "out-of-pocket" expenses.
These fees are paid directly to the lender as part of the initial costs and are non-refundable expenses incurred by the lender. They will cover compliance, underwriting, the commitment with document issuance, and legal costs to prepare the contract, among other things.
To consider your project for funding, we will need preliminary documents such as:
We recommend that you provide us with a detailed understanding of the net cash requirements from start to finish, including the repayment/exit timeline and mechanism. Please note that well-capitalized and organized projects have higher chances for the project to be reviewed by us and lenders.
We appreciate your interest in our project finance services and look forward to working with you.
