Project Funding & Development
Project finance is the financing of long‐term projects based upon a complex financial structure where project debt and equity are used to finance the project. Usually, a project financing scheme involves a number of equity investors, known as sponsors, as well as a syndicate of investors which provide loans to the operation and/or purchase equity. The invested funds are most commonly non‐recourse, which means the investments are secured by the project itself rather than from the general assets or creditworthiness of the project sponsors, a decision in part supported by financial modeling.
The financing is typically secured by all of the project assets, including the revenue‐producing future contracts or business operation. In no‐recourse project financing such as this, the risks for us are great. Since our investment can only be repaid if/when the project is operational, we are likely to lose a substantial amount of money if a major part of the project fails.
Generally, a special purpose entity is created for each project we fund, thereby shielding other assets from the detrimental effects of a project failure. As a special purpose entity, the project company has no assets other than the project itself. Capital contribution commitments by the owners of the project company are sometimes necessary to ensure that the project is financially sound. Traditionally, project financing has been most commonly used in the mining, transportation, telecommunication and public utility industries. Additionally, large scale commercial projects have been financed such as hotel development, alternative energy, etc.
Risk identification and allocation is a key component of project finance. A project may be subject to a number of technical, environmental, economic and political risks, particularly in developing countries and emerging markets. To cope with these risks, project sponsors in these industries (such as power plants or railway lines) are generally completed by a number of specialist companies operating in a contractual network with each other that allocates risk in a way that allows financing to take place. The various patterns of implementation are sometimes referred to as "project delivery methods." The financing of these projects must also be distributed among multiple parties, so as to distribute the risk associated with the project while simultaneously ensuring profits for each party involved.
The HCI Project Funding & Development Team seeks value-oriented opportunities for the funding and/or development of large-scale projects on an international scale. Such opportunities may involve commercial real estate, residential communities, healthcare facilities or development projects in the industrial, hotel and retail sectors.
Sectors of Expertise
The HCI Project Funding & Development Division targets the following sectors:
- Medical Services
- Life Sciences
- Commercial Real Estate
- Mining
- Commodities Trading
We deliver financial assistance and development services to a diverse range of business projects that meet our stringent evaluation criteria.
Generally, a special purpose entity is created for each project we fund, thereby shielding other assets from the detrimental effects of a project failure. As a special purpose entity, the project company has no assets other than the project itself. Capital contribution commitments by the owners of the project company are sometimes necessary to ensure that the project is financially sound. Traditionally, project financing has been most commonly used in the mining, transportation, telecommunication and public utility industries. Additionally, large scale commercial projects have been financed such as hotel development, alternative energy, etc.
Risk identification and allocation is a key component of project finance. A project may be subject to a number of technical, environmental, economic and political risks, particularly in developing countries and emerging markets. To cope with these risks, project sponsors in these industries (such as power plants or railway lines) are generally completed by a number of specialist companies operating in a contractual network with each other that allocates risk in a way that allows financing to take place. The various patterns of implementation are sometimes referred to as "project delivery methods." The financing of these projects must also be distributed among multiple parties, so as to distribute the risk associated with the project while simultaneously ensuring profits for each party involved.
The HCI Project Funding & Development Team seeks value-oriented opportunities for the funding and/or development of large-scale projects on an international scale. Such opportunities may involve commercial real estate, residential communities, healthcare facilities or development projects in the industrial, hotel and retail sectors.
Sectors of Expertise
The HCI Project Funding & Development Division targets the following sectors:
- Medical Services
- Life Sciences
- Commercial Real Estate
- Mining
- Commodities Trading
We deliver financial assistance and development services to a diverse range of business projects that meet our stringent evaluation criteria.
