At Hakim Saya
, we work exclusively with a select group of capital funders specializing in project financing. They finance projects globally, except in countries where the United States of America, the United Kingdom, and Canada imposed international sanctions. Our project financing starts at USD/EURO/GBP 5 million and goes up to 5 Billion
. Certain lenders will require a minimum project size of USD 50MM or USD 100MM
, and most lenders in our network provide short-term mortgages, not long-term ones.
Most of our lenders require borrowers to have between 20% to 30% cash equity to complete their projects. However, our flagship lender provides 100% Financing (60/40 Joint-Venture), with a 60% loan and 40% equity shareholding. Even with a 100% financing program, borrowers are responsible for paying for the total overall funding costs/closing costs.
Please note that due to the nature of our industry, our clients have entered into confidentiality agreements with both the lender and us, making it impossible for us to reveal any names on our website. Each transaction is treated as private and is safeguarded by a confidentiality agreement. Therefore, we do not employ our client's information to secure new business from third parties.
One area of specialization of Hakim Saya
is project financing. While we love assisting prospective borrowers with their project financing needs, we come across many project owners, borrowers, sponsors, or promoters who have no idea how complex it is to secure project financing. Along with it are brokers/introducers who have no clues about project financing but want their client's projects to get financing. Brokers/introducers must be their client's trusted advisors to provide information on securing project financing with lenders. If they don't know how project financing works, then brokers/introducers have no business to be in the project financing space.
In our experience when working with prospective borrowers, we realized that most borrowers have no capital to pay for all costs associated with securing project financing but ask for millions of dollars. They have no capital invested in the projects or skin in the game, but they want the lenders to take all the risks. Projects with no capital are too speculative. No lenders will ever hand over millions of dollars to any borrowers when the project owners, borrowers, sponsors, or promoters have no equity. These are pipedreams. Why must lenders take risks on their projects when the projects are theirs to begin with?
Project financing is complex. It involved many moving parts, different players, and entities, and securing project financing is challenging for project owners, borrowers, sponsors, or promoters. Traditional financing methods such as bank loans, equity, and bond issuances have become increasingly difficult to obtain due to several reasons, such as regulatory constraints, market volatility, and the economic impact of COVID-19. In this article, we will discuss the challenges project owners and borrowers face to secure financing and suggest alternative capital market lenders that can be approached to secure project financing.
Securing project financing can be challenging, but there are alternative capital market lenders that can provide project owners and borrowers with flexible and customized financing options. Private debt funds, mezzanine lenders, crowdfunding, project bonds, sovereign wealth funds, private financial institutions, and single or multifamily offices are alternative financing options for project owners and borrowers. By exploring these alternative financing options, project owners and borrowers can increase their chances of securing financing and completing their projects.