Project finance is the financing of long–term infrastructure. Industrial projects and public services based upon a complex financial structure where project debt and equity used to finance the project are paid back from the cash-flow generated by the project rather than the general assets or creditworthiness of the project owners. Because of this structure, the debt is said to be non-recourse. The financing is typically secured by the project assets, including the revenue-producing contracts. Generally, special purpose corporation (SPCs) are created for each project.
It is most commonly utilised in the mining, transportation, telecommunication and public industries, which are subject to a number of insurmountable technical, environmental, economic and political risks.
How we can help?
It’s our job to understand, advise on and solve the complexities involved in transactions, financing and policy at the interface between the public and private sectors. Whether it’s raising funding for infrastructure projecting or procuring private partners, we deliver solutions that fund new roads, upgrade housing, build schools, modernise hospitals, improve rail services and regenerate communities.
We reconcile investors’ need for profit with the requirements of Government for political and financial transparency.
Raise finance with a bank or a syndicate; arrange competitive financing & financing structures.
Assist with the set up of SPCs.
Drafting of Memorandum with parties agreeing the Joint Venture. Sale and Purchase Agreement.
Preparation of the Financial Projection; manage tax and accounting aspects of procurements.
Bring together project partners and structure consortia.