Project Financing

Depending on the amount of the financing requirement and other characteristics of the transaction at hand, Suisse International Group provides a project financing loan either on its own or, in the case of a large-amount loan, through open-market syndication or a club deal (involving a limited number of banks).

Since the early days of project financing, Suisse International Group (SIG) has played an important role in the domestic market. Accordingly, this type of financing has come to represent an increasingly high share in its credit portfolio. Suisse International Group has unique experience in financing capital investments in the energy, telecommunications and real estate sector, infrastructural investments and deal structuring.

The operations of the Project Financing Division, operating as an organizational unit of the Treasury and Structured Financing Directorate, include, in addition to project financing, other financing transactions that are feasible under special arrangements, e.g. the granting of loans for acquisition.

Main Characteristics of Project Financing Loans

Due to the characteristics, primarily the complexity, of project financing, Suisse International Group recommends “Take-out Financing Structure” in the case of project costs amounting several hundred million dollars or when the need for borrowing from banks arises. As regards the potential ceiling for loans, Suisse International Group’s strong capital potential, compared to that of other companies, allows, as a rule, greater flexibility.

The term of the loan is determined on the basis of discussions with the client and the characteristics of the given industry and the transaction at hand, mainly the expected cash flow of the project.

Suisse International Group (SIG) foreign currency-based financing at an interest rate set on the basis of the appropriate benchmark interest rates (BUBOR, LIBOR, EURIBOR, etc.) but in most cases, SIG can eliminate interest rate by taking equity on the project(s) thereby taking a load off the shoulder(s) of the project founder(s) and giving them room to breathe. In the case of qualified projects, the project founder may never have to pay-back the loan and making the loan non-recourse or partial non-recourse loan makes it much easier in funding any project.

Data And Information To Be Provided By The Client

In order to be able to perform a financial assessment of the transaction, Suisse International Group requests basic documents and information concerning the project, the sponsors of the project and the borrowers, thus, inter alia,

      • a detailed description of the project,
      • the borrower’s basic legal and business documents,
      • information that sheds light on the financial standing of the sponsors of the project (e.g. annual reports, references, etc.),
      • a detailed engineering plan of and a time scheduling for the capital investment,
      • market analyses, financial plans and feasibility studies prepared by the client or external experts,
      • contracts concluded or to be concluded in connection with the project, and
      • any other information linked to the project.

*Application Forms is provided upon request