Q1: What is the Debt Protection Accreditation Programme? Our Debt Protection Accreditation Programme is designed to support technology manufacturers who have an operational demonstration unit, with a level of the operational data.
It can support their process through its demonstration stages from design to commercial maturity and deployment within a project. (Download PDF
Q2: What is the Debt Protection Platform?
Our Debt Protection Platform is designed to support project developers who are seeking finance and are required to provide guarantees against the revenues of the project that is reflected in the required Debt Service Coverage Ratio (DSCR). Through an agreed process of due diligence, the final report is then provided to your insurance broker to review and discuss the results of the report for suitability of Debt Protection Insurance (DPI®)
Q4: What is Debt Service Coverage Ratio (DSCR)?
The Debt Service Coverage Ratio (DSCR) is a measurement of the cash flow available to pay current debt obligations. The ratio states net operating income as a multiple of debt obligations due within one year, including interest, principal.
Q5: What is Debt Protection Insurance (DPI®)?
Debt Protection Insurance (DPI®) is an insurance-based policy issued by an A-rated insurer arranged through your broker. We undertake on their instructions an agreed process of due diligence within our Debt Protection Platform, with DPI® the client is able to;
- Access to a broader lender base.
- Enhance their projects credit rating.
- Insure pre-agreed expected revenue to support the financing of new assets, refinancing and retrofits.
- Offer lenders the security of guaranteeing their Debt Service Coverage Ratio (DSCR).
Q6: Can I buy Debt Protection Insurance (DPI®) through my insurance broker?
YES! Contact your insurance broker to request a quote.
Q7: Can your Debt Protection Accreditation Programme merge with the Debt Protection Platform?
YES! The due-diligence is mirrored, in part, by the due-diligence requirement under the Debt Protection Platform regarding the technology, process, manufacture etc: which results in
1. The manufacturer is ready and able to offer the range of added benefits provided by the Platform.
2. Having the due diligence on the technology within the Debt Protection Platform already completed, subject to any variations on a project by project basis. (Download PDF)
Q8: What does the DPI® Accreditation provide?
The accreditation will have an identification number which is specific to the process on which the due diligence was carried out. Any variations to the original process and to the due diligence would not be covered by the accreditation and additional due diligence would be required.
Q9: As an investor what does the DPI® Accreditation mean to me?
The detailed due diligence carried out under our Debt Protection Programme results in a given number of operational hours that would reflect the possible revenues generated by the technology reviewed in a projects business plan cash flow.
This due diligence process on the technology also forms part of the required due diligence under our Debt Protection Platform, therefore, using technology that has been through the accreditation process could reduce the project due diligence time and save time and cost knowing that the technology could be suitable for funding.
Q10: I am Project Developer at an early stage of the project development, how will the Debt Protection Platform help me?
By allowing us to become part of your team from the start, we can work with you to progress your business plan, from understanding your chosen technology, its design history through fabrication to commercial deployment, thereby reducing or duplicating cost related to other due diligence requirements by third parties, resulting in your project having a competitive advantage in the financial markets.
PLUS! by providing additional financial security to your project the platform provides you with benefits, such as;
- Higher Debt Investment - lower-cost borrowing,
- Control over Exit Strategy - greater retention of shares in the company.
Q11: I have a new innovative process, which is operating and has demonstrated its ability, but with an insufficient track record. Can the Debt Protection Accreditation Programme help me?
YES! This is a typical issue faced by many manufacturers, where their technology has reached a certain stage in its development. Our Debt Protection Accreditation Programme was created for this situation. The result from the programmes' due diligence is to be able to provide you with the knowledge the due diligence carried out under the programme is transferred to a project under the Debt Protection Platform and help your company in exporting the technology to projects abroad.
Q12: Who carries out the due-diligence?
Due-diligence is undertaken by our in-house team and by independent experts.
Q13: Why is the due-diligence process for Debt Protection Insurance (DPI®) exclusive to Allied?
Members of the Allied team have been involved in supporting this insurance product for many years. The resulting due-diligence process was accepted by the insurance underwriters as the only procedure that enables them to adequately assess risk.
Q14: I have already engaged consultants to carry out technology and project feasibility reports, can I use these?
YES! But, under all circumstances, we will need to issue a report to gain access to Debt Protection Insurance (DPI®). Our due diligence will take into consideration the information and evidence used in your consultants' reports that would expedite the completion of our report.
Q15: How much does the due-diligence cost and how long does it take?
The cost and the period of required due-diligence will depend on the maturity of the project and/ or the technology. We offer an initial no-cost desktop review of your information and supporting documentation to asses suitability for Debt Protection Insurance (DPI®
). Our preliminary questionnaire is available online here.
Q16: Will your due-diligence reduce the need for any other due-diligence requirements and insurances?
Due diligence is required by all the parties involved in a project, including the contractors for project delivery, operations and management contractor, equity and debt providers, according to their individual requirements. However, we strive to bring added value to our process and work with all parties to integrate, as far as possible, the due-diligence carried out.
Debt Protection Insurance (DPI®) DOES NOT replace any other insurance that may be required.
We are always pleased to answer any other questions which are not shown here. Contact us for more information or request a quote.