Project financing services

Introduction

Project financing is defined as the financing of the development or exploitation of a right, natural resource or other asset where the bulk of the financing is to be provided by way of debt and is to be repaid principally out of the assets being financed and their revenues.

Project financing requires unique skill which requires proficiency in financing and specilised awareness about the industry, to determine the best funding mechanism for the company. The cash flow of the project is a key concern and assessment criteria will incorporate an approval of the task's possibility with respect to a few angles, for example, the sponsor’s history, the market, innovation and creation, management and HR, the environment, guidelines and legal requirements. The ideal methods for finance would then be identified including the sponsor’s contribution and gearing level, terms in loans and reimbursement plan, and the credit improvements that might be required. Shares also considered as a mode of project financing.

Warder assists project financing process by study the project, prepare the necessary business plan, financial reports and present the same to obtain required funding facilities from financial organisations, as well Warder can connect the project owners and financing partners through our professional relationships with financing partners.

Making a project dream idea at mind to a reality a really a challenge, one of the major challenge is find out finance for the Project. Warder Consultants help for the client who want make their dreams a reality , no matter that what scale of the project. Following are the financing options available for construction projects.

Private financing

Private financing is an arrangement of money lending from a private financing party to the project owner. In general this type of financing could be arranged as a property mortgage or against a bank bond . Loan re-payment plan and the interest rate could be negotiated between parties. Project owners like , house owners, Commercial property investors, residential developments, agriculture projects etc are popular in this

Bank financing

Bank financing is the most popular financing method in small and medium scale clients. In general bank financing has standard loan schemes and cooperate project financing , where the project owners can choose, based on the banks terms and conditions and the Lender’s negotiation power.

Loan schemes

Loan schemes publishing by banks in time to time are : Housing loans, Non residence Housing loans, Investment loans, etc.

Cooperate financing

There are a number of financing facilities available under the cooperate finance category, some of them are noted in following,

• Term Loans

• Working Capital Loans

• Bridging Finances

• Overdraft facilities, Letter of Credits, import loans, Parking Credit Gurantees, etc related to the projects

Equity funding/ Investment partnerships
SPVs ( Special Purpose Vehicles)

Project finance is the structured financing of a specific economic entity -a Special Purpose Vehicle (SPV) – created by the sponsors using equity or debt. The lender considers the cash flow generated from this entity as the major source of loan reimbursement

PPPs (Public Private Partnerships)

Our PPP (Public Private Partnership) / PFI (Private Finance Initiative) operational monitoring services provide our clients with total confidence that their infrastructure investments are secure during the operational phase of a contract. By commissioning us to monitor that all contractual requirements are being met, clients avoid issues such as unnecessary risk, poor service performance and potentially, financial penalties

BOOT Projects

BOOT (build, own, operate, transfer) is a public-private partnership (PPP) project model in which a private organization conducts a large development project under contract to a public-sector partner, such as a government agency. Such contracts are typically long-term and may extend to 40 or more years.

Benefits from project financing

• The sponsors could safeguard themselves from both the project debt and the risk of any failure of the project

• The sponsors could share the risk in a larger projects with others. This can be benefited for small companies where there balance sheet not sound to raise the required funds and the project financing may be the only solution for funding.

• Some Jurisdictions provide tax release advantages on project financing schemes.

• A sponsor may be constrained in its ability to borrow the necessary funds for the project, either through financial covenants in its corporate loan documentation or borrowing restrictions in its statutes

• The agreement of risk sharing basis for all co-sponsors could be difficult if the investment done on joint venture basis. , investing through a special purpose vehicle on a limited recourse basis can have significant attractions

• Make relief private housing and commercial project owners burden relief

Warder ensures our clients get maximum usage of above benefits instrumenting our expertise, capabilities and industry awareness. Also Warder’s professional connections on various expertise required in project initiation could be coordinated and connected for the benefit of project under one umbrella.

Following are the services we offer,

Warder is offering a wide range of corporate finance and advisory services under this sector.
Project initiation and financing

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