Module 07

Strategic Investment and Project Finance

Understand strategic equity, joint ventures, corporate investment, SPVs, project contracts, capital providers and bankability.

Strategiccommercial plus financial

SPVproject ring fence

Strategic capital

Financial value plus a commercial objective.

Test synergies, technology access, distribution, supply resilience, exclusivity, information rights, conflicts and exit restrictions.

Commercial alignment while the existing owner retains control.

Control transaction seeking integration, market access or synergies.

Shared ownership and governance around a defined business or project.

Early or growth investment from an operating company or dedicated venture arm.

Capital paired with commercial agreements, volume, offtake or distribution.

Acquisition across a supply chain or within the same market layer.

Project finance architecture

Capital providers underwrite the project company, cash-flow waterfall and contractual risk allocation.

SponsorsEquity and supportJV & preferred equity

Senior lendersDebt and securityProject finance debt

SPVProject companyAssets · contracts · cash flows

OfftakerRevenue contractOfftake advisory

EPC / O&MBuild and operateProject finance model

Government / DFIConcession, support or capitalPublic-private partnerships

Underwriting sequence

ConstructionCan the asset be delivered on time and budget?
RevenueWho pays, under what contract, for how long and in which currency?
OperationsCan output, availability and costs meet the base case?
Risk allocationWhich party controls and bears each material risk?
Debt capacityDo DSCR, LLCR and downside cases support the proposed debt?
Exit and refinancingWhat happens at maturity, stabilization, sale or concession end?

Module 7 of 15