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Mining and Processing plant Financing and Long Term Investment.

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  Mining and Processing plant Financing and Long Term Investment. The financial needs of companies that initiate the construction of mining and processing plants are growing as mineral resources are depleted, technologies become more sophisticated and environmental standards tighten. This dynamic sector, vulnerable to fluctuations in world prices, has faced serious challenges in recent years.  Project finance (PF)  for mining and processing plants through the establishment of SPV / SPE is one of the promising approaches to new mining projects. One of the keys to business success is to align the financial needs of a mining project for continuous implementation and development with the highly variable economic results of mining operations. Flexible use of long-term investment loans, bond issues, leasing or other financial tools allows mining companies to implement large projects in the shortest possible time. Havelet Finance Limited  is an international finance company with Channel Islan

Current trends, challenges and opportunities for Renewable Energy project

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  Current trends, challenges and opportunities for Renewable Energy project finance cannot be over emphasized. Looking back at 2020 and the   development of renewable resources , notwithstanding the COVID-19 pandemic, renewable energy continues to be a rapidly growing segment of the economy. In first three quarters of 2020, 70% of all new U.S. power capacity came from renewable energy, almost entirely solar and wind. Expected challenges in project finance include: Finance Challenges Inflation measured by the U.S. Department of Labor’s consumer price index (CPI) ended 2021 at 7.0 percent over the previous 12 months.  The CPI will fall, but there is disagreement about how much and when. The recent surge in prices has been due to production bottlenecks and supply-chain constraints. These factors are translating to higher clean energy project costs and making lenders require equipment contracts or shorter project timelines to ensure loans are repaid. Adding large numbers of new renewable e

Project Finance: Lenders Viewpoints

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  Project Finance: Lenders Viewpoints and Evolution Tendency. The past few years have brought a flood of new Project finance options to the power and infrastructure. And that has finally put infrastructure financing — particularly in the emerging markets — onto solid footing. The wellsprings of the flood are varied: a sustained period of low interest rates; the emergence of institutional capital targeting infrastructure as an asset class; the rise of local currency financing; the growth of sustainable investment vehicles. Together, they all add up to a swell of new financing options becoming available to infrastructure projects. Project finance lenders employ rigorous credit analysis methods to minimize risk when dealing with issues including stringent financial regulatory requirements, new biomass-to-energy power project sponsors, new independent power producer rules, and new biomass technologies and fuel sources.  This article outlines the credit analysis process and provides insig

Project Finance - A primer in the Renewable Energy Projects

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 Project finance has emerged as a leading way to finance large infrastructure projects that might otherwise be too expensive or speculative to be carried on a corporate balance sheet. The basic premise of project finance is that lenders loan money for the development of a project solely based on the specific project’s risks and future cash flows. As such, project finance is a method of financing in which the lenders to a project have either no recourse or only limited recourse to the parent company that develops or “sponsors” the project (the “Sponsor”). Non-recourse refers to the lenders’ inability to access the capital or assets of the Sponsor to repay the debt incurred by the special purpose entity that owns the project (the “Project Company”). In cases where project financings are limited recourse as opposed to truly non-recourse, the Sponsor’s capital. What Underpins Project Finance?   As a general (if not universal) rule, lenders will not forgo recourse to a project’s Sponsor un