FAQ

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How long will it take for an investor to fund the project?

Much depends on the nature, size and other factors of the project. Allow anywhere from 2 to 8 weeks to get from the initial engagement with the investor to the conditional terms sheet. From the conditional terms sheet to the unconditional terms sheet, allow for a further 4 to 12 weeks. From signing the unconditional terms sheet, allow 30 to 90 days for the delivery of funds. Some funds work for a range of different investors. Each of those may have different jurisdictional or other requirements when moving funds.

What is Project Finance?

Project Finance is different to any other financing structures, all of which are predicated on assets/collateral, balance sheet and/or forecasts in a business plan or prospectus. Project Finance is uniquely predicated on the financial stability and track record of the party contracted to buy the output from the built project, and on the counterparties involved in its planning, development and construction. In short, this amounts to lending against revenues from a yet-to-be-built asset, something which mainstream banking regulations prohibit.

Which sectors can Financial Asset Group AG fund within the projects?

Agri; Airports; Aviation; Bio-Fuels; Bridges; Care Homes; Clinics/Hospitals; Commercial RE; Dams; Fisheries/Fish Farming; Hotels/Resorts; Hydro-Electricity; Infrastructure; In-Ground Assets; Leisure/Recreation; Media; Nuclear Energy; Oil & Gas; Ports; Potable Water; Power Distribution; Renewable Energy; Residential RE; Road/Rail; Satellites (Commercial); Senior Living; Shipping/Marine; Social Infrastructure; Social/Affordable Housing; Solar Farms; Spaceports; Technology, Media && Telecommunications (TMT); Trams; Transport/Distribution/Warehousing; Tunnels; Utility (gas, water, sewage etc); Waste Recycling: Waste-to-Energy; Waste-to-Fuel; Wave/Tidal Energy; Windfarms.

What is the quality and degree of guidance I can expect from each transaction?

As a committed institution, we believe in building relationships with our customers and doing the right thing for them. By applying these principles to our day-to-day business activities, we commit to:
⁃ only selling products and services that are suitable for our clients;
⁃ ensuring that our staff are thoroughly trained and equipped with the necessary knowledge and skills to provide quality information to our clients;
⁃ being clear and transparent with our clients, and keeping them fully informed;
⁃ being responsive to our clients’ needs and requests, and dealing with complaints promptly and effectively.

What kind of consulting do you provide?

Financial Asset Group AG provides consulting related to Project Finance.

Can Financial Asset Group AG fund governments directly?

It is always the project that is funded, usually through a Special Purpose Vehicle (SPV), and not the project principals. It does not matter for whom or for what the project principal is. Whether a team, company, local or national government, the structure will always be the same.

What kind of collateral do you require to open a letter of credit?

The collateral required will depend on the facility type, credit rating, and many other factors. However, in most cases, Financial Asset Group AG is able to structure transactions and provide clients with collateral options through third parties for an additional fee.

At what stage is the due diligence done, before or after signing the unconditional/conditional term sheet?

After signing the conditional terms sheet.

Who does the due diligence?

Most investors have their own analysts who will conduct the major part of all due diligence. Any further verifications are usually contracted out to specialists in the market concerned whose job will be to verify information you have provided as an ‘approved’ party.

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