Projects
Project finance for infrastructure and energy
From ready-to-build pipeline into the long tenor, including the construction phase, where the risk sits highest.
Context
Your revenue structure decides how much debt the project carries.
A battery storage asset under a tolling contract carries a multiple of the debt a fully merchant one carries at identical specification. We test the revenue stack, the contract chain and the cash flow case before going to market, and structure the financing along what a credit analyst can actually model. Placement runs with project finance banks, promotional banks, infrastructure debt funds and insurers.
Focus areas
- Wind & solar
- Battery storage (BESS)
- Hydrogen & e-fuels
- Biogas & biomethane
- Waste-to-energy
- Data centres
Profile
Project developers, operators and platforms.
Project cash flow without recourse, the contract chain in place of security, completion risk during construction.
Structures & instruments
- Project finance (non-recourse)
- Construction-to-term & mini-perm
- Portfolio warehousing
- Platform & pipeline financing
Common questions
Questions on project finance
- At what project stage is the conversation worthwhile?
- Early is better. Decisions taken during project development, for example on the contract chain and the corporate structure, shape the later financing, and we are glad to support that design work. The financing structure can be fixed once site, grid connection and permitting path are settled and there is a defensible view on the revenue model. Approaching lenders follows once the structure and the cash flow case are in place.
- How much debt does a project carry without a long-term offtake?
- Without a long-term offtake a project carries materially less debt, and the structure changes. Lenders price the uncontracted share of revenues through gearing, DSCR requirement and cash sweep. A fully contracted project typically carries 70 to 85 percent debt, a largely merchant one closer to 40 to 60 percent. These are reference ranges. Depending on asset class, the robustness of the contract chain and the lender, a project can deviate from them considerably. A partly contracted project is financeable as long as the structure explicitly cushions the open share of revenues.
- Can you finance a pipeline, not just a single project?
- Yes, through warehousing or platform structures. A facility takes on projects against defined eligibility criteria and is termed out into long-term financing once the target size is reached. This requires standardised project documentation, which we help set up early.
Next Services Situations About
Bankability is decided early, during project development.
Contract structure, risk allocation and cash flow profile set what the market will finance later on. Bring us in while those points are still open. The conversation stays confidential and commits you to nothing.