Project finance is the long term financing for implementation of various projects in diverse sectors ranging from power plants, chemical processing plants, mines, transportation infrastructure, etc., Project Finance transactions play an important role in financing economic development throughout the world.
Project Finance involves raising funds to finance economically viable and independent revenue generating capital investment project wherein the lenders look primarily upon the projected cash flows of the project as the source of funds to service their loans.
These debts are most commonly loans, and the financing is typically secured by all of the project assets, including the revenue-producing contracts. Project lenders are given a charge/lien on all of these assets, and are able to assume control of a project if the project company has difficulties complying with the loan terms.
We, at Cloud9CapitalCorp, assist our clients in raising project finance for Greenfield projects as also for expansion, diversification and modernization requirements, in the case of existing units.
Project Finance Syndication services provided by us include :
- Understanding the segment / industry in which the customer is putting up the project
- Compiling information on the generally accepted parameters of the project
- Evaluation of the industry, future outlook, future prospects & other market data
- Preparation of basic financial model and evaluating the financial viability & serviceability
- Analysing the financial indicators of the project – Internal Rate of Return, Net Present Value, Break Even Analysis, Payback Period etc.,
- Sensitising the projects' financial viability to various risk factors affecting the costs, revenue and profitability aspects
- Presenting a detailed SWOT analysis of the project and giving the perceived risks & strategies to mitigate the same
- Preparation of a Detailed Project Report incorporating all the above data on viability, market statistics etc.
- Discussing & short listing at least 2-3 potential banks / project lenders suited to the requirement
- Presenting the case with the customers to the prospective lenders
- Co-ordination & interaction with the bankers/lenders for external assessment/rating
- Assist in post sanction formalities including documentation, valuation, legal etc.