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PROJECT FINANCE

PROJECT FINANCE NIGERIA

Project Finance Nigeria

PROJECT FINANCE

We source project finance for natural resource and power projects. We can also access funds for infrastructure projects. Synterra Energy Assets provide Advisory services to investors and have arrangements with lenders that have appetite for Nigerian natural resource projects. We have successfully identified both prospective equity and debt investors.

 Synterra acting as Advisors, Consultants and Local Partners also act as risk managers in specific SPVs structured to provide confidence to investors . Despite the challenges the investment environment sometimes pose, Synterra have been able to identify competent indigenous providers. As a consequence international investors and lenders are willing to adopt our innovative approach to Nigeria country risk.

Our clients are businesses with an established trading track record or a proven technology, who are ready to enter the Nigerian market. Synterra work with the management to confirm the chosen investment strategy, funding strategy and to review the available options and determine the most suitable route forward. We can offer both equity and debt funding solutions to our clients.In order to add value to Synterra, and our clients, there is a strategy to acquire proprietary interest in businesses which complement the philosophy and activity of Synterra.

FAQ FUNDING PROCESS

the projects we consider

Our core business is financing and developing oil and gas, mining, energy and agricultural projects but we also consider construction projects in a broad range of other industries including residential housing, commercial property, transport and manufacturing. To interest us, a project must usually have either a unique selling proposition or a strong combination of supporting factors

Only under exceptional circumstances with potentially high yield prospect. Normally  our lower threshold to consider a project for financing is USD$5,000,000.
In the current economic climate we expect all project finance applicants to put some form of equity into their own project. We are sometimes able to assist in sourcing equity investors

 

THE IMPORTANT FACTORS

Prevailing government policy,  economic and market indicators, foreign exchange risk mitigation, likely return on investment, market saturation, geographical location, site accessibility and many other factors

UNDERSTANDING THE PROCESS

Our systems are designed to present our analysts with the information they need when they need it. All applicants are required to adhere to these procedures. We automatically reject almost all applications which unnecessarily add to our administrative burden

THE APPLICATION PROCESS

First, you must fully complete our online project finance enquiry form.

We respond by email, usually within one or two working days, saying whether we are potentially interested in your project or not.

If we are potentially interested in your project we will email you with a comprehensive project finance application form which you must fully complete and return.

We email you to say that we have received the application form and that it has been passed to our analysts who then evaluate the information you have provided, this process currently takes about two weeks.

Our analysts make a recommendation to our executives who decide whether or not we should take your project further and we email you accordingly.

If we wish to take your project further we will email you with documentation detailing our international experience and other supporting information. We will also either request additional documentation or schedule a call or meeting

HOW THE FIRST STAGE WORKS

Initially your application will be evaluated by our analysts only and is not brought to the attention of our executives. During this phase, we do not enter into any form of discussion nor do we respond to individual enquiries whether by email, postal correspondence, phone calls or meetings, nor do we read feasibility studies, business plans or other documentation. Although this may appear to be somewhat impersonal it is the only method by which we can manage the very large number of enquiries we are currently receiving. If our analysts like your application it is then passed to our executives for their consideration otherwise we will email you with a rejection. Executive time is our most precious resource and we allocate it only when there are compelling reasons to do so. Consequently our executives only become involved at a later stage of your application.

WHY PROJECT DOCUMENTATION IS CRITICAL

High quality project documentation is absolutely essential for the success of your project. Globally, there are more projects seeking finance than there is international finance available to fund them. Consequently, in this competitive financial environment, investors, who are busy people, do not waste time on projects with inadequately prepared documentation. Lenders have to be absolutely convinced that your project is a solid investment before they will invest in it. Your project documentation is the primary means of achieving this.

NO DOCUMENTS NO FINANCE

Each project is unique but each project requires documentation produced to international investment standards typically including a market feasibility study with competition analysis; a financial feasibility study modelled on cash flow with detailed departmental costs, profit centre projections, a ten year forecast, profit and loss projections, a risk analysis, hard and soft costs and detailed exit year calculations; a business plan with professional management structure and non-compete agreements; a development budget with a detailed statement of all expenditure to be incurred prior to the project opening including contingency provisions; an initial outline architectural master plan; a final architectural master plan and a private placement memorandum with an executive summary of the feasibility studies, due diligence search findings, architectural concepts and profit and loss calculations. Additionally, an environmental impact assessment and a social impact assessment, including a defence anticipating possible objections from the public, local or government authorities or other organisations may be required. Each project also typically requires the appropriate local and government authority permits to allow the construction of the project.

WE CAN ASSIST YOU

International investors are only interested in a ruthlessly objective view of your project so it is essential that your project documentation is independently prepared by internationally experienced analysts with a proven track record.
You too should only be interested in an independent and objective view of your project, if your project does not stand up to independent objective scrutiny you should consider whether it is a good use of your time searching for investment from the international project finance market as such a search may well prove futile.

 

Can Synterra produce the documentation for my project?

Yes. We are happy to produce your project documentation as this gives us control over its quality. We have a very highly experienced team which produces comprehensive market and financial feasibility studies, business plans, architectural plans, environmental surveys and all aspects of project documentation. We produce the documentation for most, but not all, of the projects which we approve for financing. To obtain our finance provision fees we need your project to attract finance so we typically carry out these works at cost.

PROJECT DOCUMENTATION

How important is project documentation?

High quality project documentation is absolutely essential for the success of your project. Globally, there are more projects seeking finance than there is international finance available to fund them. Consequently, in this competitive financial environment, investors, who are busy people, do not waste time on projects with inadequately prepared documentation. Lenders have to be absolutely convinced that your project is a solid investment before they will invest in it. Your project documentation is the primary means of achieving this.

PROJECT FINANCE BASICS

The project finance structure for a build, operate and transfer (BOT) project includes multiple key elements.
Project finance for BOT projects generally includes a special purpose vehicle (SPV). The company’s sole activity is carrying out the project by subcontracting most aspects through construction and operations contracts. Because there is no revenue stream during the construction phase of new-build projects, debt service only occurs during the operations phase.

For this reason, parties take significant risks during the construction phase. The sole revenue stream during this phase is generally under an off-take or power purchase agreement. Because there is limited or no recourse to the project’s sponsors, company shareholders are typically liable up to the extent of their shareholdings. The project remains off-balance-sheet for the sponsors for tor he government.
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72 Newman Street, London W1T 3EH
+44 788 084 2065
tex@synterra.co
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