Getting into the investment in detail, we noticed that the payment schedules and deadlines could be significantly improved. Payments with project partners preceded access to funding due to neglected commitment to obtain licensing for the produced electricity.
At this point, the role of xFigureFinance was to propose solutions for dealing with the issue and secure capital as quickly as possible, so as not to jeopardize the realization of the project. Knowing the strategy and goals of our client and choosing between multiple financing options, mezzanine, green bonds, we proposed a limited recourse project financing structure.
We presented the final version of our financial model to several financial institutions. After reviewing their initial proposals, we narrowed down our choice to two lenders and after several iterations, we were able to reach a conclusive offer with the preferred one.
The tipping point occurred at the loan approval, when the lender set as a condition for loan utilization the approval for electricity production license issued by the State Energy and Water Commission (SEWC). As we have worked on the project from the very beginning and already had a detailed financial model, we were able to react quickly and prepare the necessary information for the licensing request in days.