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Investment

Evolve is able to help secure long term financing for infrastructure and industrial projects based upon the anticipated cash flows of the development.

Evolve’s investment methodology usually involves a project financing structure from a number of equity investors as well as a syndicate of banks or other lending institutions.  The loans are most commonly non-recourse loans, which are secured by the project assets and paid entirely from project cash flow, rather than from the general assets or creditworthiness of the project sponsors, a decision in part supported by financial modelling. The financing is typically secured by all of the project assets, including the revenue-producing contracts.

Project lenders are given a lien on all of these assets, and are able to assume control of a project if the project company has difficulties complying with the loan terms.

Generally, a special purpose entity is created for each project, thereby shielding other assets owned by a project sponsor from the detrimental effects of a project failure. As a special purpose entity, the project company has no assets other than the project. Capital contribution commitments by the owners of the project company are sometimes necessary to ensure that the project is financially sound, or to assure the lenders of the sponsors' commitment.  To ensure that Project Financing is the correct method of funding a project, Evolve can implement a number of requirements that need to be satisfied initially. This can include:

  • Engineering, Procurement, Construction (EPC Contract)
  • Operation & Maintenance Agreement (O&M Agreement)
  • Concession Deed
  • Shareholders Agreement (SHA Agreement)
  • Off-Take Agreement
  • Supply Agreement
  • Loan Agreement
  • Inter-creditor Agreement
  • Tripartite Deed
We understand that, although this method of financing projects is more involved and takes a longer period of time to implement it does provide a fully verified and secure investment vehicle. By utilising an SPV with SPE’s within it the structure becomes a very robust and durable investment tool.