Most times, companies and large businesses are faced with challenges of finding funds to finance large projects, especially when it comes to multi-billion dollar infrastructure, industrial or energy projects with a long construction period. One of the preferred options is the so-called syndicated loan for large business.
At the planning stage, our clients must decide whether to use equity capital, finance a project with the help of business partners, shareholders, investors, or use loans from banks and other financial institutions.
If you are planning to implement a large investment project, contact Viola funding Limited Our team has extensive experience in financial modeling and project financing.
With the support of our high-net-worth angel investors, we can help you finance the construction of renewable energy sector, wind farms, refinery and oil storage depot projects or other capital-intensive facility on the most favorable terms.
Syndicated loan and external financing
According to the World Bank, financing large projects is a major challenge for fast growing economies.
Today a business can choose the following sources of project financing:
•Bank loans
•Leasing.
•Factoring.
•Issue of shares and bonds.
All of the above sources of project financing can be used in various combinations, based on the characteristics of a particular business.
A bank loan is a common form of external financing for large projects. Due to the variety of forms of lending, this tool can be easily adapted to the individual needs of a particular company. It is also one of the cheapest sources of capital.
Syndicated loan for project financing: key features A syndicated loan is a long-term loan usually used to finance a specific project.
Viola Funding Limited can assist clients in obtaining a long-term syndicated loan for large business on attractive terms and interest rate.
The role played by financial advisors in obtaining a syndicated loan
When your company first enters the syndicated finance markets with a major project, it is advisable to hire a financial advisor from the start. Such advisory functions are performed by renowned European and American banks such as Merryll Lynch, Goldman Sachs, JP Morgan, Citibank, Deutsche Bank, RBS, West LB and many other world famous brands.
Viola Funding Limited is ready to provide businesses with a full range of advisory services, including financial modeling, selection of optimal funding sources and assistance in obtaining a syndicated loan on favorable terms.
The role of a financial advisor in obtaining a syndicated loan:
•Professional assistance in drawing up a business plan at the request of the bank. Execution of official documentation and negotiations with interested parties.
Syndicated loan standard terms and conditions
Financing large projects through a syndicated loan requires the borrowing company to strictly comply with numerous requirements throughout the term of the agreement. This includes informational, financial, legal or other obligations stipulated by the relevant contract.
In addition to standard reporting on project finance, banks may require permission to change a company’s business profile, an obligation to apply for consent (waiver) in the event of a merger with another legal entity, the creation of subsidiaries, and many others.
Bank requirements depend on many factors, including the following:
•The size and position of the company in the market.
•The amount of the syndicated loan and its maturity.
•History of cooperation with agent bank.
Important recommendations
The preferred financing base for large projects in the energy, environmental and infrastructure sectors is a long-term syndicated loan that best meets the needs of such projects.
The syndicated loan provides stable financing at relatively low costs. Preparation in this case is extremely important, since the subsequent success of the entire operation often depends on professional planning and competent paperwork.
When using syndicated financing, companies should maintain certain ratios within specified limits. These actions are in the best interests of the business as it will minimize subsequent costs.
If you are looking for funding sources for a large project, contact Viola Funding Limited. We are ready to share our experience and assist in obtaining loans from leading European banks and financial institutions.
eMAIL:[email protected]
Website:https://viola-funding.com/