Project finance stands as a cornerstone for facilitating large-scale infrastructure and development projects.

At Financely, we specialize in guiding sponsors through the multifaceted process of financing such projects, from the earliest stages of capital raising to the final phases of long-term debt management.

What is Project Finance?

Project finance refers to the long-term funding of infrastructure and industrial projects based upon the projected cash flows of the project rather than the balance sheets of the project sponsors. This financial structure is pivotal in sectors like energy, transportation, and utilities, where projects require significant investment and take time to generate revenue.

Why Project Finance?

As projects grow in complexity and size, traditional corporate finance can fall short. Project finance offers a way to:

1. Allocate Risk: It allows for the distribution of risk to different parties best suited to manage it.
2. Raise Large Sums: It makes it possible to fund substantial projects without affecting the corporate credit of the sponsors.
3. Attract Investment: By securing the project assets, project finance can attract a diverse pool of investors.

The Role of Securitization in Project Finance

Securitization is a process where certain types of assets are pooled so that they can be repackaged into interest-bearing securities. In the context of project finance, this involves the creation of a special purpose entity (SPE) to issue securities.

Here's how it can be beneficial:

• Liquidity: It transforms illiquid assets into liquid securities.
• Risk Management: Securitization can spread the risk across various investors.
• Capital Recycling: It allows banks to move assets off their balance sheets, freeing up capital to lend to other projects.

Financely's Approach to Project Finance Securitization

Our methodology is built on transparency, due diligence, and strategic planning:

1. Project Assessment: We evaluate the project's feasibility and revenue-generating potential.
2. Structuring the Deal: We set up SPEs to facilitate the issuance of debt and equity securities.
3. Financial Closure: We ensure that all financing is in place and risks are appropriately hedged.
4. Ongoing Management: Our team monitors the project's financial health and performance against projections.

The Stages of Project Finance Transactions

Working with Financely means your project will be supported at every stage:

• Development Phase: We provide advice on structuring the project to make it financeable.
• Construction Phase: Financely arranges the necessary short-term construction finance.
• Operational Phase: We help transition to long-term financing once the project is up and running, often through securitization.

Projects Ideal for Financing

Project finance is not one-size-fits-all. It’s ideal for:

• Large infrastructure projects like highways, airports, or hospitals.
• Energy projects, including renewable energy farms and oil & gas exploration.
• Real estate developments, particularly large-scale commercial properties.

The Growing Need for Project Finance

As the global economy expands, there's an increasing need for infrastructure development.

Governments and corporations frequently find themselves with more viable projects than they have the capacity to fund through traditional means.

This gap is where project finance and Financely’s expertise shine.

Partnering with Financely

Financely’s project finance services begin with an investment in our partnership through a retainer. We commit to the full lifecycle of your project, ensuring your venture is not just viable, but profitable.

Project finance is more than just a funding mechanism; it’s a strategic approach to managing large-scale project risks and revenues. With Financely, you gain a partner equipped with the expertise to navigate this complex process. For those looking to bring ambitious projects to fruition, we’re ready to lend our expertise.

Are you planning a project that could benefit from our securitization services? Contact us to discuss how we can work together to make your vision a reality.