Asset-Backed Lines of credit for Tailored Project Financing

Period characterised by the low level of liquidity of the market, secondary capital markets and private banking solutions are a little known option for investors and project sponsors but merit a particular mention because of their level of guarantee of the investment and/or project financing.

In the case of developing countries, without any access to the capital and debt markets, this alternative allows its governors to perform tailored financial programs for the improvement and the development of their country’s infrastructures and related facilities, contributing to their social and economical sustainability as a key factor to retain economic activity and create new ones and, to improve the population well-being.

The main characteristic of this approach is that the capital is fully assured, as the funds and/or the financial assets remain under the total control of the investor or project sponsor along all the project finance process, and Lines of Credit are collateralised by this financial assets.

To operate in the secondary capital markets, it\’s absolutely necessary to rely on highly specialised and world-class financial and banking consultants as in the case of Avering team, to manage and ensure that the investors and project\’s sponsors have direct access to the Top worldwide financial institutions.

The procedure for project financing that Avering proposes to the project’s sponsors (public or private) that are looking for a new way of funding for its projects is the following:

1. Project’s sponsor sends the project\’s feasibility study;

2. If the project fits the economical and social requirements of our intervention, Avering signs a Joint Venture Agreement with the project\’s sponsor directly.

This agreement will include:

• General agreements;
• Success fees agreements;
• Confidential agreements;
• List of projects and their economic value;
• Needs of equipments and raw materials;
• Financial assets available (LOC, CD, SKR, BG, SBLC, Properties, Concessions, etc.).

3. At this point, Avering conducts the approval of the project plan through its foundations and/or private financial traders (see also Financial Instruments) and determines the financial assets needed to generate a tailored financial program for the project.

4. Once approved funding needs, the project\’s sponsor transfer the management (not the ownership) to Avering of the financial assets agreed, allowing it to be able to activate its foundations and/or private financial traders in order to generate the funding necessary for each project.

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