We take pride in providing our customers with the individual financial solutions which best suite their needs in turning an idea into a fully operation project. Project finance as a means of financing construction as well as the projects long term operational phase is an effective way to repay a loan based on the cash flow generated by the project. The cash flow is generated by the ability of the operator to secure long term off-take/sales contracts. This form of finance is most commonly used for Special Purpose Vehicle / Companies "SPV/SPC"; creating a liability stop at the SPV/SPC. The financial strength of the project is of particular importance in this type of finance.
In some cases project finance can be done with ECA commercial and political risk insurance.
As a project developer it is our job to put together the financing not only for the more risky shorter construction phase, but also for the more stable, longer operational phase. After all, who is better suited than the developer, who knows every aspect of the project.
Some specific advantages of project finance loan structure are:
- Limited liability to the shareholders/sponsors of the project SPV/SPC
- Tailor made repayment schedules corresponding to cash flow generated
- Relatively inexpensive financing costs