Project Finance
Project Finance is designed to maximise the growth potential of a project (through the construction and operating phases of a project cycle). It allows project Sponsors/Owners to collaborate with Funders and other interested parties to create and sustain highly successful project outcomes.
Non-recourse project financing, often with no terminal value, where the debt/equity is repaid from the revenue specifically generated by the project over its lifetime (perhaps via a ring-fenced Special Purpose Vehicle). Project Finance allows you to segment your overall risk, increase leverage and enables smaller entities to develop large projects.
MCR assists with the structuring of project finance solutions to address your current needs with a long term focus on generating revenue and returning value to stakeholders.
Receivables Funding
Receivables Funding mechanisms are utilised to monetise the value of an operating project’s confirmed receivables (i.e. any applicable customer offtake sales contracts). The stronger the credit rating of the customer(s), generally the lower the financing risk is to respective Funder(s). Structures vary, but can be based on factoring of a single customer’s receivables through to a Receivables Securitisation structure incorporating multiple customers simultaneously.
This structure of funding allows both newly-established and previously-established entities to realise liquidity from their customer base, thereby improving their own working capital. Receivables funding is a natural progression from Project Finance solutions as it enables revenue-based repayments once projects are operational (i.e. revenue generating).
MCR can assist in structuring Receivables funding programmes for companies already benefiting from Project Finance solutions, as well as companies that have a new requirement for this type of funding solution without previous exposure to Project Finance.
HOW OUR PROCESS WORKS
Simple 4-Step System
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1
Framing the Funding Need
MCR discusses your funding requirements with you
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2
Project Assessment
MCR assesses your project and provides guidance about how best to structure your Information Memorandum (IM) or Project Proposal to secure appropriate funding solutions
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3
Project Development & Funding Agreement
MCR works with you in the initial stage to revise your IM, then facilitates the engagement between you and any potential funder(s) throughout the latter's Due Diligence process to ensure that you secure the funding solutions you require (from Equity provision, to Debt financing and post-revenue Receivables funding solutions)
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4
Implementation of Funding
Once all Financing Agreements have been executed with your funding providers, funding drawdowns are implemented in accordance with your project schedule/timeline. The ongoing relationship between the funder(s) and your project is managed by MCR