
Project Financing with the development financial institutions, international commercial banks, Structured Joint Venture Partnership (Private/Public) Funding Programs, Sovereign Wealth Infrastructure Funds and Export Credit/Import Financing Agencies;
A typical SPH approach to a project finance mandate would consist of the following:
Borrower Team Due diligence
Agreed financial objectives, Risk analysis, Technical review – “is the Financial Solution (FS) a Best Financial Solution (BFS)?”, Models/scenario analysis, Legal due diligence, Equipment/procurement packages, Advice on JV partnership arrangements
Financing Preparation
Information Memorandum, Detailed Financial Modelling, Term Sheet, Independent Engineer’s report, Contingency and cost overrun planning
Financier Selection
Beauty parade (price; balance sheet; track record; hedging; team/ability), Negotiate roles, tranches and term sheet
Approval Processes
Financier credit preparation, Sensitivity Analysis, Disclosure/consultation period, Mandate letters, Risk approvals
Contract Documentation
Third party agreements (including government), Investment/JV agreements, Engineering, Procurement and Construction Management (EPCM) contracts, Offtake
Finance Documentation
Negotiate finance documents, Project contracts
Closing/drawdown/implementation
Paper the deal, Complete Conditions Precedent (CPs), Get client to first drawdown/investment