PROJECT FINANCE

Mondial Advisory draws on a network of key relationships with brokers and lenders from the Middle East to provide access to project finance services for significant projects.

Our approach leverages our consulting capabilities in commercialisation, business model innovation and design and business development backed with in-house research teams to help support this effort with credible technical evaluation and advice.  Our network of relationships with specialists in areas such as econometrics, energy markets, engineering, procurement and construction, water and wastewater, agri-economics and agricultural productivity helps projects finesse their scope, structure, approach and planning to ensure the attention and interest of lenders and feasibility of their plans.

Project financing: an alternative approach for large projects (typically >A$100M)

Project financing is lending provided for the development of a project based on the specific project’s business model, risks and future cash flows. Such funding is generally suitable for large infrastructure or capital intensive projects that may be too expensive or speculative for the balance sheet and conventional borrowing power of the parent company, proponent or sponsor.

Typically delivered as debt the lending supports fast tracked projects for which development approval processes have been progressed and key dependencies are in place. Ideal projects aim to achieve operational status within two years of finance close and generate free cashflows that can see the loan repaid over ~10 years from project completion.

Suitable project business models have customer segments and customer value propositions backed by concrete evidence of the price available for its products and services and the market for those products and services. Commodities in established markets have prices supported by well understood market economics and projections of future price trends by economists and industry analysts.

Example Project Characteristics

  • Renewable Energy

  • Path to Zero Carbon

  • Hybrid Energy Solutions

  • Solar Fuels including Green Diesel and Hydrogen

  • Sustainable and Clean High Productivity & Agriculture

  • Low or High Temperature Thermal Energy Storage

  • Electrification of Heat

  • Waste Heat Recovery

  • Wastewater management and utilisation

Ideal Project Criteria

  • Business model with verifiable customer segments and value propositions supported by proponent or partner capability to deliver

  • <24 month development period (with repayment holiday)

  • Generating free cashflows within 36 months that see the project finance repaid within 10 years from end of development period

  • Scale (A$100-1500M Project size)

  • Contracted off-take agreements or unimpeded route to market

  • Valuable or commodity products or services with clear future demand

  • Formal project approvals in place including development, environmental, grid access etc, or clear path to obtaining approvals

Contact us now to discuss your project finance needs.