What is Project Finance?

Project finance is a method of raising funds to finance an economically separable capital project in which the funds raised are generally secured by the assets of the project and are repaid solely from the cash flow generated by the project. This is also called “non-recourse financing.” Capital raised for projects can consist of a bundle of different types of investments, which may include equity and debt. Click here for a Glossary of Project Finance Terms and Acronyms

What can iGF do that we cannot do ourselves?

We have years of experience in raising project financing for clients. We know what’s important to investors and lenders, the kind of information they look for and the kind of questions they will ask.

We know how to package your project and present it in a manner that will be positively received by financing sources.

We also have a network of valued contacts, private investors, senior lending officers and at major financial institutions that specialize in project financing.

Raising capital is a highly specialized full time job. By delegating the task to us, your time is freed up to focus on operations and development of the project.

We already have a business plan. Why is it necessary for you to rewrite it?

Very often, a company’s business plan focuses on operations or on highly detailed technical aspects of the process or project. We will look at your plan if you have one, and more frequently than not, we have to rewrite the plan to concentrate on what we know capital sources look for. The time it takes us to prepare your documents can be reduced if you already have a business plan written.

What documentation will I need to provide to you?

The short answer is “as much as possible.” Generally we will have to see the following types of information once we start working together:

How long will it take you to raise the funds we need?

Providing you supply us with sufficient information, we can determine whether we can help you in a short period of time. If we determine that your project is suitable, we will send you a service agreement. Then, depending on a number of factors, including the amount of work it needed to get documents prepared, the cooperation we have from you to get additional information we need to complete our package, it could take from three months to one year to secure the financing.

How much will it cost for your services?

Our standard fee arrangement is a one-time retainer paid to us before we start, and a success fee based on the amount of funds raised that is paid to us at the time of closing directly from the proceeds of funds we raise for you. You will also pay for our travel and out of pocket expenses as they are incurred. All international travel is at business class standard.

Is there any assurance that iGF will be able to raise the funds we need?

Services provided by iGF are on a “best efforts” basis. Clients who engage our services do so at their sole risk. iGF expressly disclaims any implied warranty that may be understood concerning the timing or success of its service.

Does iGF work for bankers or investors?

We are an independent service company. We represent our clients exclusively, and provide them with advice, counsel and services that will lead to obtaining long term non recourse financing for their project. Our compensation comes exclusively from our clients. We are not on retainer to any financial institution and neither receive nor seek fees from any potential source of capital for our clients. Our advice to clients is completely unbiased.