Financing

ADCS mobilises resources for private enterprises for project financing. The degree of sophistication involved in the funding of a project is usually driven by the project's size and complexity. In large projects, the debt financing is often provided by a syndicate of banks, which may be made up of both local and international institutions. There may be several classes of lending banks - international banks lending foreign credit, local banks lending domestic currency and international agencies. Different tiers of lending may also be involved such as secured and unsecured, short term and long term and subordinated. The challenge of structuring the project finance is to establish a mix of debt, equity and mezzanine financing that optimises the use of financial sources.

Equity capital is provided by the sponsors, but also by institutional investors, local or international capital markets and specialised funds.

ADCS draws from its associates worldwide to package large infrastructure projects. Teaming up with some of the world's top project people, it facilitates the packaging of joint-venture consortiums for:

Airports
Road Systems, Highways
Bridges
Dams
Power Plants
Renewable Energy Projects
Water and Sewerage Systems
Telecommunications
Mega Resorts
Refineries, Petrochemical Plants
Mining Projects
Industrial Concerns

Over the last ten years, there has been an accelerating global trend towards the execution of major infrastructure projects through Build-Operate-Transfer (BOT) schemes and related variants.

Financial structures have been specifically developed and tailored to the risk profile of individual projects. On the equity side there has been an increasing tendency by institutional investors to participate in such ventures. Examples include private and public funds and multinational institutions.

On the non-equity side, a multi-source structure is now commonplace. Such a structure might involve senior project debt, subordinated or long-term debt, export credit support and privately placed or publicly issued bonds and other securities.

Refinancing following project implementation, often substituting capital instruments for debt, are now widely used.

Interest in BOT and other schemes is growing rapidly and numerous projects have been implemented around the word. However, many projects have stalled because of the legal and regulatory complexities that must be satisfied.

BOT schemes face many problems outside the legal realm, such as economic and financial feasibility, technical difficulties and political resistance.

ADCS can help you put a workplace financial structure together that would be bankable. ADCS specialises in the development of broad privatisation programs and the execution of individual privatisation transactions.