Project Funding

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 for 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 the lenders ability to 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. Depending on a client's financial condition or asset holdings-alternative solutions may be available.

We understand that many clients are experts in their own business area; however, they are unfamiliar with project finance processes and protocols. Most clients typically require private finance to undertake their project but may not realize the complexities or the level of work involved in securing that financing. Poorly prepared projects entering the project finance marketplace may stand little or no chance of success. Prospective lenders always favor well-prepared projects that appear to be well-managed and imbue a sense of confidence.

We highly recommend that clients take the time to develop their ideas, concepts, and strategies for the project into a compelling, high-quality, and well-written project business plan to show confidence for lenders to provide the financing required.