Project financing is quite specific and substantially different from other forms of financing available to businesses. Major differences are: (1) project assets themselves are the only practical collateral for financing and in most cases such assets are highly liquid thus exposing the financing party to high risks, and (2) return on the investment (and of the investment) relies on future operations that have no prior history, both from market participants and the executive team. Additional risks of project execution and time exposure related to construction period are not helping either.

Because of that, the requirements from financing parties to project owners, managing team, contracts, market research,  and risk mitigation are quite specific and stringent; equity allocation, liquidation preferences, step-in rights and a host of other issues and covenants surrounds each project finance deal and reflect its own unique specifics.

For clients who have not been exposed to project financing process before, it can be highly intimidating and frustrating; incorrect decisions and actions often follow. EnergyOne stands by ready to assist, educate, and guide you through the entire financing process.