By providing access to both equity and debt secondary markets, Avering’s financial engineering is just as critical to the success of a large project as are the traditional forms of engineering, in order to structure financing alternatives, create the optimal capital structure, guarantee access to the required capital and maximize the assets’ value of the structured finance transactions as part of the project finance process.
Maximise Assets’ Value
Avering advises project sponsors, investors, contractors, operators, and governments in order to boost their initiatives and projects by engineering project finance transactions to maximize the value of their assets.
Project finance can be arranged when a particular infrastructure (or facility) or a related set of assets is capable of functioning profitably as an independent economic unit. The sponsor(s) of such a unit may find it advantageous to form a new legal entity (special purpose vehicle or SPV) to build, own, and operate the project. If sufficient profit is predicted, this company can finance the construction of the project on a project basis, which involves the issuance of equity securities and of debt securities that are designed to be self-liquidating from the revenues derived from project operations.
The project sponsor(s) shares the risks associated with the project failure with the other participating entities by keeping the project off the balance sheet.
As the projects are large and capital extensive, multiple parties often provide capital in the form of debt or equity.
As the whole project is a different entity, a dedicated team is assigned to look after the completion of the project, which results in better efficiency and output.
Explore beyond your limits
We look forward to doing great things with you anywhere in the world.
Performing a personalized, confidential and independent service, we advise our clients to make the best decisions regarding the planning and management of their investments and projects, with the main objective of boosting growth and return on their initiatives by leveraging and maximizing the value of their assets.