Broad Street Capital Group: Project Finance

Broad Street Capital Group
140 Broadway, 46th Floor
New York, NY 10005 USA
Phone: (212) 490-4323
Fax: (212) 490-4324 info@broadstreetcap.com

Project Finance

Project financing is a form of raising capital that is based on cash flow to be generated by the project in question. The lender must determine if the cash flow generated by the project would be adequate to cover all costs associated with the project, operation costs, and also retain enough capital to service debt. If the lender is satisfied with the proposed debt repayment structure, terms are then agreed upon and disbursement follows.

The term project financing is quite often misinterpreted. More important than the meaning itself are the common misconceptions. Project financing is not a means of raising money for a project that can not be financed on a conventional basis. The project must be completely economically sound, whereby all debt will be serviceable while providing an acceptable return to equity investors.

Typically, project financings have many similarities. However, each individual project involves custom tailoring of the financing package for the particularities of the project. Broad Street Capital Group, as financial advisors, fashion a complete, and comprehensive financial proposal to ensure success of the given project.

Frequently Asked Questions

What kinds of projects are financeable?
New and ongoing projects that have no negative effect on the environment and are not in arms trade/gambling/alcohol/tobacco related areas can be eligible for project financing. If financing through OPIC, preferred projects are in the areas of infrastructure, manufacturing, distribution and construction.
A sponsor generally needs to contribute 30-45% of their own capital to the project. OPIC projects require a US investor to contribute 25+1% of the total project cost.

How long does it take to get financing?
A typical project takes 6-12 months to receive financing.

What is the typical term on a loan?
We offer loans that have a tenor of 5-15 years.

What are the typical interest rates on these loans?
Interest rates vary by project depending on risk associated with the project, the country of the financed project, US interest rates and the tenor of the loan. Typically these interest rates are 2-5% lower than those offered by local banks.

What kind of financing is available?
Broad Street Capital Group offers debt financing through both private and government sources, including OPIC, EBRD, IFC, JP Morgan, and ABN Amro, in addition to private equity financing.

How to determine if a project is financeable?
A no-cost, private consultation with one of our investment banking associates held in person or by telephone whereby the project in question is discussed in detail will determine if the project is eligible to proceed in the process of attaining project financing.

How to apply for project finance?
Once the project is pre-qualified, the professionals at Broad Street Capital Group will assist in the preparation of application materials, a business plan, financial models and all other necessary documents required for approval.

For more information, or to see if your project qualifies for financing, please contact:
agordin@broadstreetcap.com

New York Office:
+1(212)490-4323 - Tel
+1(212)490-4324 - Fax