Project finance is the funding (financing) of long-term infrastructure, industrial projects, and public services using a non-recourse or limited recourse financial 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 advantages of project financing is that it provides off-balance-sheet funding from the project, which will not affect the shareholders' credit or the government contracting authority and shifts some of the project risks to the lenders in exchange for which the lenders obtain a higher margin. Other examples of project finance include mining, oil and gas, and building and construction. Typically, the financing is made up of debt. Capital stack ranks the priority of different sources of financing. Senior and subordinated debt refer to a company's capital stack rank.
We understand that many borrowers/sponsors are experts in their own business area; however, they are unfamiliar with the project finance processes and protocols. Borrowers/sponsors typically need private finance to undertake their project but may not realize the complexities or the level of work involved in securing that finance. That said, poorly prepared projects entering the project finance marketplace, in our experience, stand little or no chance of success. Prospective lenders/funders always favor well-prepared projects that appear to be well-managed and imbue a sense of confidence.
Therefore, we highly recommend that borrowers/sponsors take the time to develop their ideas, concepts, and strategies for the project into a compelling, high-quality, and well-written project business plan that will not only convince us but, eventually, our lenders/funders to provide financing for their projects.Who Are Our Lenders?
This particular program is with our US-based lender. Our lender is an alternative capital lender. Our flagship lender or funder is a fully qualified US-recognized non-bank lender. They don't operate like a bank. The project financing lender that we work with has an unconventional methodology that most typical borrowers are accustomed to or used to. Their funding model sources are in the placement of structured notes (through investment banks) and our flagship lender. The notes must be investment-grade, determined by the underlying assets (e.g., projects and their investment-grade collaterals. We are interested in "premium grade projects" with premium investment grades, and our lender funds 100% premium projects.
The lender has a unique platform where their processes and protocols facilitate their ability to do what they do. For those who follow their steps, the process is relatively seamless and straightforward, and for those who attempt to customize their steps and alter their protocols to suit their own way of thinking, this is not the place for you. The reason is that the lender is under strict compliance requirements that do not allow them to deviate from the guidelines that they have agreed to and abide by, which also makes the terms and conditions of this loan facility possible.
Please note that only premium projects made it through the term sheet. Premium means US projects or US international projects with premium collaterals. International locations are narrowed to certain triple AAA jurisdictions. That said, we always preferred US projects unless collaterals are also premium elsewhere in triple-A countries. For example, we will entertain projects with long-term purchase/sale agreements (e.g., PPA, SPA, offtake agreements) with an investment-grade rating. Or income-producing US real estate properties (e.g., resorts and hotels with recognized operating agreements with international hotel chains).
Most projects are lost due to the lack of funding or not receiving any funding at all. Thus, we at Hakim Saya
have the solution for Green Energy Project Funding. For this lending program, we have partnered with a US-based Private Equity firm, and our Partner has funded many projects around the globe. Projects Types:
We are looking for projects to fund such as Solar, Wind, Biofuel, Biomass, Geothermal, Hydro Power, Energy Storage, Oil and Gas Project Funding, Natural Gas, Carbon Emission Control Projects, Environmental Social and Governance Projects, LNG Projects, Sustainable Real Estate, Hospitality, Water Production and Conversation, Telecommunications, and Infrastructure. We will entertain other industries on a case-by-case basis.
Geography:U.S. projects are preferred (our US lender will give priority to U.S. and U.S. International projects - faster to close).
We can fund in places like the U.S., Canada, UK, SE Asia, Germany, France, Ireland, Austria, Australia, Japan, South Korea, Belgium, Switzerland, Denmark, Finland, Israel, Luxembourg, Singapore, Malaysia (case-by-case), Thailand, (case-by-case), Poland, Sweden, etc. (Any other premium investment-grade countries).Currently, in Africa, we do not fund as it is impossible at this point and time.
Also, suppose there are U.S. or International Sanctions. We cannot work in those nations (e.g., China, Cuba, Iran, Libya, Syria, Yemen, Somalia, Venezuela, North Korea, Nigeria, Myanmar, Eritrea, Kyrgyzstan, Sudan, Tanzania, Belarus, etc. Funding Dollar Size:
We work with projects greater than USD100 Million and up to USD 5 Billion.What Type of Funding That We Not Provide With This Alternative Lender?