Project Finance is a specialized area of finance which passes risk through to its partners. Developing nations are common locations of large projects, and public/private partnerships and IMF involvement are occasionally seen. Private and public/private projects are common for large undertakings in the U.S.
Project finance is commonly used in large scale manufacturing, extractive industries (mining and oil & gas), energy generation, transportation, infrastructure and telecom. Sponsorship may be a single party or numerous parties. They may be purely financial investors, or strategic investors with expertise or other resources to bring to the transaction.
Well structured project finance transactions identify and mitigate the risks associated with the project. These include output quantity and price, input quantities and costs, construction risk, completion risk, operating performance risk and financial risk. The number of contracts that need to be negotiated is one of the greatest challenges in bringing a transaction to market.
We will work with you from project conception through operational objective achievement. Our skill sets include econometric analysis, financial modeling, critical path modeling, operating risk management, risk identification and mitigation, derivatives, due diligence analysis, and negotiating terms for debt and equity financing.
Our services as financial advisor include assisting with:
- Feasibility studies
- Risk evaluation and risk mitigation strategies including political risk structuring
- Engineering, Procurement and Construction Contract
- Structuring of contracts to accommodate project finance
- Off-Take Agreement
- Supply Agreement
- Operation and Maintenance Agreement
- Financial modeling, sensitivity analysis and financial structuring
- Capital raising: debt, mezzanine capital, equity, development finance, and export credit
- Loan Agreements, Intercreditor Agreements, Common Terms Agreement and Tripartite Deed
- Concession Deed
- Shareholders Agreement
For more see:
– From conception to operation, we will assist you in identifying risks, mitigating them, negotiating contracts, obtaining project finance, closing and operating your project.
– We are particularly attuned to the uniqueness of each project. Lateral Thinking is at its best on an unstructured, unique problem. We are at our best when the problem is difficult, unique, and global.