In the current climate, it is becoming increasingly difficult, but still possible, to raise development capital for projects. Reasons development financing has become more difficult:
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Not all "clean" technologies appearing in today's projects are fully-commercial, in some cases creating an opportunity to have CTI assist your company to apply for a federal loan guarantee.
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The uncertainty surrounding carbon mitigation cost is making it more challenging to quantify a project's long-term return.
- Fortunately, with commodity prices falling and EPC contractors once again looking for business, capital costs are no longer rising as steeply, and may even be declining. Uncertainty surrounding capital costs still remains a factor making it harder to raise development capital at the present time.
Structuring energy project financings
No matter what the market conditions, well-structured projects fare best. Experience shows that developers who stick to the basics and prepare carefully before approaching investors and lenders always do better.
Having guided development teams through competitively-bid financings many times, CTI can quickly and efficiently show your company how to:
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Optimize your project's configuration to produce the quality of return that will meet investors' thresholds.
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Prepare your project's economic projections and information memorandum in a form that investors and lenders can readily digest and react to.
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Identify the most logical investors to approach, given your particular project's strengths.
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Appreciate the differences among investors, and how to appeal to them.
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View your project from an investor's perspective so that you can best structure development compensation that is attractive to you and still be viewed as reasonable by the investor.
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Take advantage of the negotiating leverage CTI provides.
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Come across as experienced professionals who have done their homework.