Project financing of RES plant
When the client turned to us with a request of negotiating financing, they already had several alternative proposals. Despite this, we managed to negotiate better price parameters and structure terms and accomplish the set objectives. Here is how we did it:
The owners of a company in the food industry were planning to invest in a new business venture by constructing a biogas power plant with installed power capacity of 5MWp.
The investment amounted to 6.5 million euros with the client already having purchased parcel, equipment supplier, ЕРС contract for execution, and a pre-signed contract for the purchase of the produced electricity.
Due to the established presence of the owners’ main business on the market, several financing offers from banks were on the table. All of them, however, required the operational business to be pledged as a co-debtor.
As we like to say, we at xFigureFinance stand firmly behind each project and manage the process to a successful end by negotiating the best financing as a structure and terms for the project. Here is what we did and achieved for KICK:
We know the financing options of the local market and after analyzing the project, we advised the client to refuse the available offers.
Instead of investment financing with guarantees from another business, we offered a combination of Project Financing for construction and Revolving Financing fir raw materials. In tis way the client could negotiate financing without additional guarantees and the project could actually self sustain.
We at xFigureFinance go into the details of the Project and prepare all the necessary documents.
And in this case we prepared detailed financial models, presentations of the Project and the structure of the specific type of financing.
We stand with all our expertise, present the project and answer key questions. Here is what we did for KICK:
• We created a competitive process by presenting the project to three financing institutions;
• We reviewed and agreed on the terms of the financing offer (ammount, own participation, repayment period, price terms, collateral package, terms of utilization, financial covenants, etc.);
• We coordinated the process until approval was obtained by supplementing information, developing additional scenarios of the financial model and analyzes requested by the banks;
• We advised the client for choosing the final binding financing structure;
When the time comes to negotiate and defend terms, the xFigureFinance team stands close to the client to find the balance and close the deal.
Here is what we have achieved
for the owners of KICK:
• Approved Project Financing for 70% of the invesment amount;
• Collateral the project itself without additional guarantees and commitments with the main business of the owners;
• Repayment plan following the cashflow of the project for 12-year period;
• Adequate price terms and a long-term financial partner.
Project KICK is one of the many renewable projects of xFigureFinance. We have experience with financing of solar parks, wind and biogas power plants, and we often advise a combination of financing instruments in order to create the most appropriate financing structure. We have good luck and over 95% success, and we often like to say:
„Luck is what happens when preparation meets opportunity.“
Henry Ford
Project KICK is one of the many renewable projects of xFigureFinance. We have experience with financing of solar parks, wind and biogas power plants, and we often advise a combination of financing instruments in order to create the most appropriate financing structure. We have good luck and over 95% success, and we often like to say:
„Luck is what happens when preparation meets opportunity.“
Henry Ford
Our shared successes
“In the xFigure team we met true partners who stood firmly behind us and together we went through the long process of attracting an investor to support the growth of euShipments.com. The team worked hard, dedicated and we were able to make important strategic decisions as well as raise EUR 7.5 million from investment funds in the country.”
CEO, euShipments.com
“xFigure performed a complete analysis of the company and the industry in which our business is conducted, arriving at a valuation that was key to a subsequent completed transaction with DHH for the purchase of a 60% interest in the company. The outstanding commitment and results presented were highly appreciated by DHH, as a result of which Ms. Chopeva was invited to join the Board of Directors for a long-term partnership.”
Svetoslav Hristov
Evolink SA
“We turned to xFigureFinance to develop a model for analysis of the cashflows and profits of our business. This allowed us to identify and expand the most profitable activities very clearly, as well as to optimize expenses that do not bring the desired result. This project has become a long-term partnership and we have been working with the team for two years now. xFigureFinance are able to listen, analyze and ask the right questions and are invaluable partner in our business and in validation of our new investments.”
Boris Sekulski
Endeavour Constructions
“Working with xFigure helped us make a strategically important investment decision. The analysis of the team showed us clearly what the key risks are and how to structure the deal. Our partnership with xFigure is valuable for us because they build on our expectations and give us confidence with a multispectral view of each project.”
Todor Dimitrov
Sofiiska banica
“We are extremely happy to have another member join APSTE – Association for Production, Storage and Trading of Electricity – xFigureFinance!
We believe that with your expertise and experience we will be able to work towards best practices in financial structuring and modelling of renewable energy investments.”
Mariyana Yaneva
APSTE
“xFigure helped me to make a decision whether to develop a large photovoltaic project and how to approach it. Even at the Idea stage, I was able to answer key questions related to the productivity and return of the project on the local market. The team’s knowledge of financing opportunities and conditions and the preparation of information for banks and investors was extremely useful.”
Bozhidar Draganov
BODD Solar
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