Project Finance Equity Gap & Bridge Funding

Project Finance Equity Gap & Bridge Funding

This mandate is aimed at sponsors with projects that are already well advanced and approaching final investment decision, but where the capital stack is not yet complete. Typical situations include an equity shortfall, a construction or VAT bridge requirement, or a last-mile top up that needs to sit alongside senior lenders, ECAs, or DFIs.

The focus is on projects with defined technical scope, permits substantially in place, a clear revenue framework (such as a PPA, offtake contract, or availability-based structure), and a financial model that has already been used in discussions with senior lenders. The work is concentrated on completing the capital stack on that specific project, not on early stage concept development.

Equity gap and bridge funding support for projects from approximately USD 30m to 250m+ in total capital cost. Engagement fees from USD 45,000, with a success fee on new capital arranged under the mandate. All work is provided against an engagement fee paid by bank transfer.

Project Profile And Eligible Sponsors

Suitable Project Types

  • Renewable energy projects such as solar, wind, hydro, and storage with defined sites and permits.
  • Infrastructure and utilities, including transport, logistics, and essential services with contracted revenues.
  • Industrial and processing facilities with secured feedstock and offtake arrangements.
  • Total project capital expenditure usually in the USD 30m to 250m+ range.
  • Senior lenders, ECAs, or DFIs engaged or actively reviewing the project.

Sponsor And Readiness Criteria

  • Experienced sponsors with a defined project company and a clear governance structure.
  • Permits and approvals substantially in place or on a credible path with documented status.
  • Revenue framework agreed in principle: PPA, offtake, concession agreement, or similar.
  • Base financial model available, with sensitivities and underlying assumptions explained.
  • Evidence of development capital already committed and spent on the project.

Mandate Scope, Deliverables, And Funding Options

The mandate is designed to clarify the outstanding requirement in the capital stack, define the instruments that can reasonably fill that requirement, and present a coherent case to potential capital providers. It is a targeted process around a single project, not a broad marketing exercise.

  • Review of technical, commercial, legal, and financial documentation relevant to the capital structure.
  • Identification of the specific gap: equity, subordinated debt, holdco facility, VAT or construction bridge, or a combination.
  • Design of potential structures for that gap, with attention to intercreditor considerations and senior lender requirements.
  • Preparation of a concise capital stack memorandum and supporting financial summary for investors and lenders.
  • Approach to a defined set of investors and lenders who are active in the relevant sector, jurisdiction, and ticket range.
  • Support through indication and term sheet stages, including alignment with senior and existing financiers where applicable.

Possible sources of capital may include specialist infrastructure and energy funds, private equity and private credit investors, and institutions able to provide subordinated or structured facilities. Final outcomes depend on the project’s risk profile, documentation quality, and market conditions.

Fee Structure, Parameters, And Engagement Terms

The fee structure reflects the work required to review a complex project, define a viable structure, and run a focused engagement with potential providers of capital. The mandate is paid and capacity is reserved for projects that meet the profile described on this page.

  • Project size: generally USD 30m to 250m+ in total capital cost.
  • Typical gap: equity shortfall, subordinated tranche, VAT bridge, construction bridge, or similar last-mile requirement.
  • Engagement fee: from USD 45,000 for projects in the USD 30m to 75m range; typically USD 60,000 to 100,000 for larger projects.
  • Success fee: 2 to 3 percent on new capital arranged under the mandate.
  • Payment method: bank transfer only, against invoice. Work begins once the engagement fee is received.
  • Refunds: the engagement fee is not refundable after analysis and structuring work has commenced.

Financely acts as a project capital arrangement platform through regulated partners and does not use its own balance sheet. Any financing outcome is subject to the independent assessment, approval processes, and capacity of third party lenders and investors.

Start A Project Finance Gap & Bridge Funding Mandate

If your project is approaching final investment decision with a defined capital shortfall and the characteristics described above, you can initiate a mandate on these terms. The engagement focuses on completing the capital stack for a single project by structuring the outstanding requirement and presenting it to appropriate capital providers.

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Project Finance Gap & Bridge Funding: FAQ

Can this mandate support very early stage or concept level projects
The mandate is intended for projects that are significantly advanced, with key permits, contracts, and financial modelling already in place. At concept or early development stage, the level of uncertainty is high and capital requirements are different. In such cases, a separate development-focused engagement would usually be more appropriate than this gap and bridge mandate.
How does this interact with existing senior lenders, ECAs, or DFIs
Any proposed structure for the gap or bridge component needs to be compatible with the requirements of senior lenders and other existing financiers. As part of the mandate, the capital structure is reviewed in the context of intercreditor issues, security sharing, and covenant frameworks, and any outreach is conducted with those constraints in mind.
Is there any assurance that the equity gap or bridge will be fully covered
No. The mandate is a best efforts process. It is designed to provide a clear structure, transparent information, and access to appropriate capital providers, but investment and lending decisions are made independently by those parties. Factors such as sector appetite, jurisdiction, risk allocation, and timing all influence outcomes.
Can fees be linked entirely to financial close without an engagement component
The work involved in analysing the project, structuring the gap component, and preparing material for external review is substantial. An engagement fee is therefore always charged upfront, with a success fee applied when new capital is arranged. A purely success-based model is not offered under this standard mandate.
What information should sponsors expect to provide at the outset of the mandate
Sponsors should be prepared to share a current financial model, key technical and environmental documentation, status of permits and approvals, details of revenue and offtake arrangements, term sheets or indications from senior lenders, and an overview of project company governance and shareholders. A clear and well organised data room supports the process and influences how external capital providers view the project.

Disclaimer: This page describes a paid mandate for project finance equity gap and bridge funding. It is not an offer of securities, not a public solicitation, and not a commitment to provide financing. Any facility or investment is subject to independent credit and investment approvals, KYC, AML, sanctions screening, legal documentation, perfected security where applicable, and available capacity of third party lenders and investors. Financely operates as an arranger through regulated partners and does not act as a bank, broker dealer, or fund manager.

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