US and International long-term financing of infrastructure and industrial projects based upon the projected cash flows of the project and a financial guarantee. The financing is a non-recourse loan, which is paid entirely from project cash flow, rather than from the general assets or creditworthiness of the project sponsors. Generally, a special purpose entity (SPV) is created for the project for shielding other assets owned by a project sponsor from the detrimental effects of a project failure. As a special purpose entity, the project company has no assets other than the project. Capital contribution commitments by the owners of the project company are sometimes beneficial to ensure that the project is financially viable.
Sectors: Renewables/cleantech, infrastructure, waste-to-value, green housing/real estate, construction, manufacturing, mining (gold, silver, lithium).
Debt-to-equity ratio: 100% of the project budget
Stage of project: Pre-development
Size range: $25 million to $4 billion
BG/SBLC/APN Coverage: 100%
Loan type: non-recourse
Loan range: 4 to 20 years
Asset class: mezzanine or subordinated debt. No senior debt is required