Evaluating debt financing possibilities for commercially or otherwise sound projects, initiated by other relevant parties, and also arranging debt financing in case of a positive first evaluation
Organisation: Nordea Bank
Time: 1/1/2010 – 1/1/2011
Nordea will provide expert advise and services for projects that are eligible for debt financing from financial markets or other relevant sources. The commitment includes evaluation of the general project structure, participants commitment, business plan, financial viability.
This may include evaluating the following:
– source of raw material, energy , site and other essential production elements
– construction contracts and risks, operation and maintenance contracts
– demand for output, take off agreements and parties
– financial structure and cash flow modeling resulting in identifying:
> currency + interest risks and hedging
> minimum equity requirement
> other relevant requirements for finding a sound and sustainable financial structure for a project.
Technical and environmental risks need to be evaluated by other experts. Legal due diligence can by done either by Nordea or by other experts according to the case.
If the requirements can be fulfilled to a reasonable extent, Nordea can also arrange the financing, together with other financial parties when deemed beneficial for the project.
Nordea’s commitment extends to 30 days of full time work by Nordea’s project finance and other specialists (analysts, lawyers, etc) during the first year or one successful project.
A pilot case could be the conversion of the Leningrad Oblast chicken farms manure into usable substances; fertilizers and/or gas and thereby diminishing the negative impact on the Baltic Sea of these substances being dumped into nature.
This will require credible commercial parties to establish a company owning the conversion plant and partners willing to buy the end product or to take care of the sales of the end product.
Projects that will have significant and permanent positive effects on any of the Helcom focus areas, typically involving;
-enhancing energy production or other activity that is ongoing operation, or
-one time project requiring and credible for debt financing.