| Project Finance | Debt Financing | Equity Financing | Take-Out Financing | Co-Development | Export Financing |

Renewable Global Energy offers Project Financing Services to Renewable Energy developers. We assist Developers acquire the necessary investment capital that can help bring their projects to reality. We work with the Developers and Renewable Energy investors to make the financing process faster and more efficient.

Some of services include:

arrow Project Data Collection and Analysis
arrow Qualified projects are introduced to investors
arrow Structuring deals and helping to close projects

Our Investors

Renewable Global Energy works with a number of investors that can arrange capital into a Renewable Energy project. Some investors we work with include corporations, banks, high wealth individuals, independent power producers (IPPs), etc.

Types of Financing Provided

We use our knowledge of project financing in order to advise Developers and Investors on the best financing solutions. We look at both the strengths and weaknesses of every project and provide suggestions as to how the project can be more appealing to investors.

We help structure the following types of investments

arrow Co-Development
arrow Take-out Financing
arrow Debt Financing

After we have qualified a project, we identify investors that would be interested in such projects and then provide assistance to both parties with negotiation, Due Diligence, as well as other services.

Why would Project Financing be considered?

Sponsors have two options when it comes to financing a new project:

1. Project Financing: The new project is incorporated into a recently created economic entity, known as a Special Purpose Vehicle (SPV). This is then financed off-balance-sheet.

2. Corporate Financing: The new project is financed on balance sheet

In Option 1, the new project remains separate from the existing firm (hence the creation of the separate entity). Should the project become unsuccessful, creditors have no claim against the sponsoring firm's cash flow and assets. Existing firm shareholders can benefit from the separate incorporation of the new project into an SPV. One of the drawbacks of this option is that it is costly to structure and organize a deal, around 5-10%.

In Option 2, in order to guarantee the additional credit provided by lenders, the sponsors must use all the cash flows and assets from the existing firm. This is done so that should the project be unsuccessful, the cash flow and assets can be used as repayment to the creditors (both old and new) of the combining entities (the new project and the existing firm).

High Costs Associated with Project Financing

1. Monitoring the Project and Process are very high
2. A great amount of time is required by the insurance, technical and legal advisors as well as the loan arranger, for the evaluation of the project as well as the negotiation of the contract terms.
3. Greater risks lead to a larger cost for the lender

Project Financing vs. Corporate Financing

Project Financing allows for a higher level of risk allocation, which allows for a debt-to-equity ratio that would otherwise not be achievable. This therefore impacts the equity IRR.

Corporate Financing can always rely on the guarantees by the personal assets of the sponsor. In terms of Project Financing, the only collateral refers to those assets that are solely serve to carry out the inititative. This is an advantage for sponsors because assets can be used as collateral should more funding be required.