PROJECTS FINANCING

Thanks to its Intenrational Marketing Network, DEZA TECH SARL U s.r.o receives different reuquests related to the financing of development projects. 

Those projects are identified by our consultants in cooperation with project owners or borrowers. 

The financing process start when the project owner send us a Letter Of Intent ( LOI) and the Project Profile. 

After prelimanary analysis and consultations with the financier, if the project fulfil the necessary requirement and supposing the borrower is an existing company, then the borrower will be requested to send the feasibility studies and tha balance of the five last years. 

In case it is a new company of start up, the balance of at least three years to come will be requested. 

According to size of the project, in some case a team of expert will be reuqested to visit the site and make the evaluation. 

In most of the case thanks to the local bank or the borrower bank offering the required garantee, any decision related to the acceptance of the project financing rely on the decision of the bank offering the requested garantee. 

It is a milestone to achieve the rrequest ed financing structure of the project that relies on a careful assessment of construction, operating and revenue risks and seeks to achieve optimum risk allocation between the private partners to the transaction. 

The financial structuring in practice means to limit risks to senior lenders and allocating this to equity investors, subcontractors, guarantors and other parties through contractual arrangements of one kind or another. 

Thanks to a strong team of financial advisers, we are able to decide and advise on the likely sources of funding for a given project. We alsop help to find either the EPC, Investor or Exporter to fulfil the requirement the financier stress in case of the financing of export. 

They are different scenarios but Equity is usually provided by the project sponsors but may also be provided by the contractors who will build and operate the project as well as by financial institutions. A large part of the equity (often referred to as “quasi-equity”) may actually be in the form of shareholder subordinated debt, for tax and accounting benefits. Since equity holders bear primary risks under a PPP project, they will seek a higher return on the funding they provide. 

Therefore it is highly recommanded that each projetc financing is analyzed case by case to ensure it feasibility and the return on investment. 

For any question, please contact us at serviceclient@dezatech.com

 

SUMMARY OF THE FINANCING PROCEDURE