• For Project Developers

    THE PROBLEM: Funders don't like risk - especially when technology is new or has little or no track record.

    Typically, within every major capital project or large asset acquisition, there are three principle risks; financing, commercial, and operational. The project sponsor takes the financing risk, and the commercial risk of there being a market for the output of the investment and is remunerated accordingly.

    However, what has caused issues and, in many cases, transactions to flounder, has been the issue of who should take the operational availability risk of any new project or asset acquisition.

    • Debt Providers offer less debt, because of availability risk. 
    • Sponsors are committed to investing more equity 

    Our Project Risk Platform's due-diligence provides an opportunity for a third party to ‘guarantee’ this operational risk.

     

    THE SOLUTION: Due Diligence the Finance and Insurance Markets trust.

    We undertake a rigorous review of the chosen technology, including projected cash flows and assumptions with a focus on the operational hours of the process. The purpose of the due diligence is to confirm operational availability through robust evidence or establish a level of anticipated operational availability that can be used to support and underwrite this risk with lenders.

     

    We tailor our due-diligence to the project. Our team of experts assess the project exposures then create a flexible, workable solution to protect against threats of unexpected downtime that could affect the projects ability to service its debt and /or higher debt ratios.

    Allieds' Project Risk Platform; is a rigorous review of the project and the chosen technology, including projected cash flows and assumptions with a focus on the operational hours of the process. The purpose of the due diligence is to confirm operational availability through robust evidence or establish a level of anticipated operational availability. This can then be used to support and underwrite the risk for lenders by protecting them against unexpected downtime that could affect the projects ability to service its debt and attract a higher debt ratio.

    The benefits of the platform are; reducing investment risk by supporting debt service payments, providing the ability to increase the debt to equity ratio, increasing the attraction of the project to equity investors and increasing shareholder value on exit

     

    Our Due-Diligence provides the following flexible structures:

    • For Technologies – Pre- Commercial Deployment - technology start-up, working with your engineers and EPC contractors, to reduce or remove commissioning risk.
    • For Project Developers – Post - Technology Commercial Deployment – protecting the long-term total project investment with a guarantee to protect the projects ability to repay its debt service requirement caused by unexpected maintenance risks.
    • Supports developing technologies that are seeking to enter the commercial market with little or no track record.
    • Provides a solution to project and technology developers that meets the demands placed upon them by the financial markets enabling their technology or their project to reach its potential.
    • Enables innovation and growth in the renewable energy sectors.
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