Unique project financing

About

Koshy Associates Limited and it’s collaborators are supporting large, often sustainability-focused projects via a unique-in-the-market project financing solution offered by a US-based asset management firm. Here are the top line characteristics of this project financing solution: • Approx. 4% fixed interest rate; • 12-year term typically; • 3-year grace period with no capital or interest to pay and no interest accruing; • First payment made by end of 4th year; • 0.5% discount on interest rate for sustainability projects; • No security on the project or project owners; • No upfront fees. Minimum lend is $10m. Preferred minimum is $50m. No stated maximum. The lender has supported approximately 100 projects now since 2019, including projects in excess of $1Bn. Critically, there is a security in the form of a pledge i.e. collateral of 20% or 25%, diminishing proportionately as capital is repaid. The pledge can be: a) held in a securities account in the borrower’s name, at Tier 1 banks like Citibank, Wells Fargo etc.; b) held in a cash blocked account in the EU, again in the borrower’s name; c) in the form of an SBLC, typically in the case of government backed projects. Mutual KYC, AML and Proof of funds of the pledge is required before proceeding to application stage. If sourcing the pledge is a challenge, Koshy Associates can also help with this, via our partners. NOTE: Koshy Associates Limited is not FCA approved and therefore is not offering financial advice nor a financial product. We can introduce projects to a potential solution with the above characteristics. All parties must do their own due diligence as to suitability of the potential solution.