RaiseReady™ Private Credit for Project Finance

1. Private Credit: The Fast Lane of Modern Project Finance

The build‑out of energy transition assets, resilient transportation links, data infrastructure, and circular‑economy plants now outstrips the lending capacity of conventional banks and slow‑moving multilaterals. Private credit—capital from pension plans, insurers, sovereign funds, and infrastructure debt funds—has stepped into that breach. These lenders write bespoke, long‑tenor loans outside the Basel‑III playbook, tailoring draws and covenants to construction milestones rather than quarterly balance‑sheet optics. Sponsors get certainty of funds, quicker credit decisions, and fewer syndication delays; investors capture predictable, asset‑backed yields in an era of volatile public markets. RaiseReady™ exists to bridge the two sides—turning permit packs and PPAs into executed term sheets at institutional scale.

2. Project Finance, Decoded

Project finance is a funding technique that isolates a single asset—or a tightly related asset cluster—inside a special‑purpose vehicle (SPV). The SPV owns the permits, contracts, and physical plant. Creditors take security over those items and rely on the project’s cash flow for repayment. That structure is called non‑recourse because lenders have no claim on the sponsor’s wider balance sheet once construction is finished and performance guarantees roll off. The SPV must therefore survive forensic due diligence: every contract, study, and covenant must lock together so that the lowest‑case revenue still clears all debt service, reserves, and operating costs.

When engineered correctly, non‑recourse project finance unlocks higher leverage and longer tenor than straight corporate borrowing, freeing the sponsor’s senior facilities for other expansions. It also allocates risk precisely: construction‑period delay damages sit with the EPC contractor; resource volatility is hedged or absorbed by offtakers; country‑specific political risk can be wrapped by export‑credit agencies or insurers. Private credit lives comfortably within that allocation because its investors prize contractual downside protection over speculative upside.

3. What We Finance

• Renewable Power – utility‑scale solar, onshore/offshore wind, run‑of‑river hydro, battery storage, and hybrid micro‑grids.
• Conventional & Transition Fuels – LNG regas terminals, gas peakers, and CCS‑ready thermal retrofits.
• Waste & Water – waste‑to‑energy, advanced recycling, anaerobic digestion, desalination, and bulk water treatment.
• Transport & Logistics – toll roads, bridges, port expansions, intermodal freight hubs, and last‑mile rail spurs.
• Digital Infrastructure – hyperscale data centres, fibre backbones, and edge nodes in high‑growth metros.
• Social & Civic PPPs – hospitals, student housing, justice facilities, and smart‑city utilities under availability‑payment models.

4. The Capital Stack—Layer by Layer

A sustainable capital stack balances first‑loss equity, cushion‑building mezzanine, senior loans sized to base‑case cash flow, and contingent facilities that de‑risk surprises. Percentages shift by sector and jurisdiction, yet the logic stays constant: cash moves down through the waterfall only after all senior obligations clear.

Layer	Typical Share of Total Cost	Pricing Range	Key Purpose
Sponsor Equity	10 % – 25 %	Target IRR 12 – 18 %	Absorbs first losses, aligns governance
Preferred Equity / Mezzanine Debt	5 % – 15 %	SOFR + 550 – 850 bps or 10 – 13 % fixed	Fills leverage gap, flexes repayments via PIK
Senior Private Credit Facility	50 % – 70 %	SOFR + 250 – 450 bps	Core funding through construction & operation
ECA / DFI Tranche	10 % – 30 %	CIRR + margin or 3 – 4 % fixed	Country anchor, political risk comfort
Contingent Facilities (LC & DSRA)	N/A	1 % – 2 % commitment fee	Cover debt service, O&M, or warranty calls

5. Who Provides the Money?

5.1 Senior & HoldCo Private Credit Lenders

Insurance companies, pension schemes, infrastructure debt funds, and sovereign wealth credit arms write 7‑ to 15‑year senior loans with sculpted amortisation. Minimum tickets USD 20 million; many happily hold USD 250 million if the offtake is investment‑grade.

5.2 Development Finance Institutions (DFIs)

IFC, EBRD, AfDB, and similar multilaterals blunt country risk and catalyse parallel private lenders. They often insist on IFC Performance Standards and measurable ESG reporting.

5.3 Export Credit Agencies (ECAs)

ECAs wrap up to 85 % of eligible export content at sovereign‑linked spreads, trimming senior pricing or extending tenor. Their involvement, however, locks the project into documentation formats and content percentages that can lengthen schedule.

5.4 Mezz Funds & Hybrid Equity Investors

Mezzanine funds absorb residual cash‑flow volatility, accepting PIK toggles or back‑ended IRRs, in return for elevated returns. Some can convert to preferred equity post‑COD.

6. Enhancing the Stack with Insurance

• Political Risk Insurance (PRI) – Shields lenders from expropriation, currency inconvertibility, and unrest.
• Contract Frustration Cover – Pays out if sovereign offtakers fail to honour PPAs or concessions.
• Surety Bonds – Replace 100 % cash margins on performance guarantees, freeing sponsor liquidity.
• Completion Insurance – Wraps cost‑overrun risk, allowing lower sponsor support and higher leverage.

7. Evidence Lenders Must See

7.1 Bankable Contract Suite

• Offtake or availability agreement matches loan tenor and sets currency alignment.
• EPC contract: fixed‑price, fixed‑date, with delay‑damage schedule covering debt service plus contingency.
• O&M contract: KPIs and budget fixed for at least five years post‑COD.
• Fuel/Feedstock: long‑term supply or hedging strategy addressing price volatility.

7.2 Technical & Environmental Assurance

• Independent engineer (IE) report validating design, technology maturity, and schedule realism.
• Bankable resource report: P50, P75, P90 output predictions.
• Environmental and social impact assessment (ESIA) aligned with IFC PS or Equator Principles.

7.3 Robust Financial Model

• Sensitivities: output ±10 %, price ±20 %, capex +15 %, rate +200 bps.
• Sculpted repayment hitting minimum DSCR ≥ 1.25× at P90.
• Fully modelled tax, hedge, and reserve flows.

7.4 Governance Architecture

• Waterfall: revenue → VAT → O&M → senior debt → mezz → distributions.
• Locked reserve accounts for debt service, major maintenance, liquidity.
• Board committees with lender observer rights.

8. How RaiseReady™ Converts Readiness into Funding

Lenders fund quickly when the narrative, numbers, and evidence align. We build that alignment, then stand beside the sponsor through every Q&A cycle.

8.1 Holistic Document Map

We inventory permits, contracts, studies, and insurances against lender playbooks and flag gaps early. Sponsors get a punch‑list with responsible owners and due dates.

8.2 Model Reconciliation & Audit Prep

Each line item ties to a contract clause or study page. When the model auditor arrives, 90 % of reconciliation work is already done—speeding sign‑off.

8.3 Curated Capital Outreach

We avoid mass teasers. Only lenders with proven appetite for the project’s sector, ticket size, and jurisdiction see the file, preserving sponsor leverage.

8.4 Competitive Term‑Sheet Process

We drive simultaneous offers, benchmark margin curves, and track comments in a live matrix. Sponsors pick a lead knowing market proof lies on the table.

8.5 Advisor & Insurance Coordination

IE, legal, model audit, ESG consultant, insurance broker, and hedge bank scopes move in parallel under a master timeline we enforce each week.

9. Private Credit Term Grid (Indicative)

Parameter	Senior Debt	Mezzanine / HoldCo
Tenor	7 – 15 yrs incl. construction	5 – 10 yrs
Grace / Sculpting	Interest‑only during build; sculpt to DSCR thereafter	Back‑ended amortisation or bullet
Pricing*	SOFR/EUR + 250 – 450 bps	SOFR/EUR + 550 – 850 bps (or 10 – 13 % fixed)
Leverage	Up to 70 % total cost	Stack to ~80 % with mezz
Fees	1.0 % – 1.5 % upfront; 0.5 % commitment	1.5 % – 2.5 % upfront
Covenants	DSCR, LLCR, construction reserve, hedging test	Cash sweep, distribution lock, change‑of‑control
Security	All‑asset pledge, assignment of contracts	Share pledge over HoldCo, cash‑flow subordination

*Ranges reflect Q3‑2025 market. Actual margins depend on sector, country, and offtake strength.

10. Project Timetable—From Mandate to Drawdown

• Week 1 – 2  – Mandate signed, retainer paid, document gap matrix issued.
• Week 2 – 5  – Data room finalised; IE, legal, and model audit scopes locked.
• Week 5 – 8  – Soft market soundings; feedback drives model & term‑sheet refinement.
• Week 8 – 11  – Parallel term‑sheet negotiations; lender credit committees convene.
• Week 11 – 14  – Preferred stack chosen; definitive documents drafted; CP tracker live.
• Week 14 – 16  – Model audit sign‑off, insurance bound, hedges executed; first draw.

11. Common Pitfalls—and Our Pre‑Emptive Fixes

• Permit Lag – missing derivative permits discovered post term‑sheet. We run a permit schedule with legal counsel signatures before soundings.
• Resource Overstatement – sponsor pitches P50, lenders underwrite P90; we build the model on both and show debt service capacity.
• Capex Overrun Risk – EPC contingency set too low; we benchmark regional cost curves and negotiate additional LDs or cap‑overrun insurance.
• Weak Completion Support – ambiguous step‑down dates; we calendar support release tied to IE sign‑off and DSCR break‑even.
• Fragmented Advisor Timing – studies and audits start after term sheets; we launch all scopes in Week 2 to hold timeline discipline.

12. Engagement Economics

• Retainer  – USD 40 k – 150 k (size & complexity driven)
• Success Fee  – 0.8 % – 1.5 % on funded senior & mezzanine
• Equity Placement Support  – optional; custom fee based on share of raise
• Third‑Party Costs  – model audit, IE, legal, ESG, insurance advisory billed at cost to the project SPV

13. Ready to Convert Readiness into Capital?

Sponsors spend years moving a project from concept to permit. Capital deserves the same precision and urgency. RaiseReady™ has guided gigawatts of generation, kilometres of transport arteries, and gigabytes of data capacity from “shovel‑ready” to “fully funded” through private credit that moves at the pace of construction, not committee season. Our playbook is blunt: clear evidence, tight models, curated lender outreach, and relentless timetable control. If your project can pass a true bankability test, we will marshal the capital stack you need—without detours or empty promises.

RaiseReady™ is a Financely Group service. We are not a deposit‑taking bank and do not guarantee funding. All mandates require executed terms, KYC, sanctions screening, and a retainer. Funding is subject to investor/lender approval, third‑party due diligence, and executed documentation. Misrepresentation or withheld information terminates the engagement and may trigger AML/CTF reporting.