Project Advisory Services
Project Finance is a specialized area in corporate finance that deals with the financing of an economic vehicle which can generate the economic returns to its stakeholders.
From the lender’s perspective, project financing can be defined as the financing of an economic unit, based on the assessment of such unit’s capacity to services the loan and interest thereon, out of the profitability and the cash flow generated by the proposed project.
Investment banks have a significant practice line in project advisory and transaction services though it may be given a different naming in each bank.
Most projects in recent time have used the services of investment banks in this area of high finance. Broadly, the range of services entails the following:
a. Bid advisory services in projects wherein the project is awarded through a particular consortium through a bidding process.
b. Advise in formation of consortium and structuring consortium agreement.
c. Advising in shareholders agreements, subscription agreement and equity shareholding pattern.
d. Advise in entering into other key project contracts.
e. Structuring the means of finance for the project.
f. Preparation of project report, loan applications and associated documents.
g. Act as “arranger” on behalf of client for representation and negotiations with lenders and
equity investors.
h. Management of private placements/public offers of debt or equity.
i. Achieve the financial disclosures with the best terms and in the best possible time for the project
Project Finance is a specialized area in corporate finance that deals with the financing of an economic vehicle which can generate the economic returns to its stakeholders.
From the lender’s perspective, project financing can be defined as the financing of an economic unit, based on the assessment of such unit’s capacity to services the loan and interest thereon, out of the profitability and the cash flow generated by the proposed project.
Investment banks have a significant practice line in project advisory and transaction services though it may be given a different naming in each bank.
Most projects in recent time have used the services of investment banks in this area of high finance. Broadly, the range of services entails the following:
a. Bid advisory services in projects wherein the project is awarded through a particular consortium through a bidding process.
b. Advise in formation of consortium and structuring consortium agreement.
c. Advising in shareholders agreements, subscription agreement and equity shareholding pattern.
d. Advise in entering into other key project contracts.
e. Structuring the means of finance for the project.
f. Preparation of project report, loan applications and associated documents.
g. Act as “arranger” on behalf of client for representation and negotiations with lenders and
equity investors.
h. Management of private placements/public offers of debt or equity.
i. Achieve the financial disclosures with the best terms and in the best possible time for the project