The potential investor gains a clearer understanding of the transaction, making more informed and safer investment decisions due to the complete and substantiated information contained for offering memorandum for project funding

A high-quality offering memorandum may become a serious trump card when looking for investors and agreeing on financing terms.

Whilst setting up projects for funds raising, any typical business requires a professional services towards developments in offering memorandum for project funding , this happens when it has to do capital-intensive and high-risk projects with important financial requirements.

Offering memorandum in project funding: definition, goals and stages

In addition, it should contain basic information about the company, including a description of its activities, market, financial results and their objective assessment, as well as prospects for future business development.

An offering memorandum is a document, the main purpose of which is to present the current state of the issuer of securities, as well as the prospects for a specific project or directions for the company’s development.

Offering memorandum is not a static document, The issuer can at any time make changes and modify it so that it remains clear and transparent for the selected circle of investors.

Offering memorandum for project funding involves, amongst others:

• Evaluation of project constraints and possible risks.
• Feasibility study.
• Description of the specifics of the business or planned project.
• Comprehensive market analysis and competition assessment.

The key features of the offering memorandum as a tool for attracting funding require the provision of minimal information about the project initiator, an assessment of the project cost at various stages of implementation, as well as justification of the structure of the transaction for investors.

This document should contain a full description of the measures that ensure optimal interaction between owners, investors and project managers in the post-investment period.

Reasons for writing an offering memorandum for project funding include the following:

• Obtaining short or long term funding.
• Ensuring strategic partnerships with investors.
• Preparation for pre-public offering and IPO.
• Implementation of the issue of bonds.
• Sale of part of the company.

The second stage of creating an offering memorandum for project funding is to determine the specifics of the activities of a particular enterprise to which it refers. This is understood as the totality of all aspects that relate to the subject of the company’s activities.

An example of an offering memorandum for business: project funding

The methodology and practical approach to writing an offering memorandum can vary significantly depending on the sector, company or specific project.

Below we have given an example in which we have listed the main points and sections to which special attention should be paid when developing this document.

The introduction may contain a description of the financed business project, indicating the benefits of this investment for participants.

Offering memorandum for project funding allows investors an idea about the company, its level of reliability and financial stability.

Brief description of the history of the issuing company and its key activities, as well as important achievements and stages of development in the past.

The financial statements attached to the offering memorandum are compiled in accordance with current requirements and contain the key information necessary for potential investors to decide on potential participation in the project.

Writing an offering memorandum: our services

writing an offering memorandum for a large investment project is a complex and multi-stage task, the structure of which depends on the situation and should not be carried out according to a rigid template.

If you need support or advice on any investment issues, check out the list of VIOLA FUNDING services and entrust your project to professionals.

Viola Funding Limited provides large businesses with a full range of services in the field of investment engineering and consulting, including feasibility studies, development of an investment strategy, business project evaluation, writing an offering memorandum, project financing and much more.

Together with its international partners, including reputable engineering companies and equipment manufacturers, VIOLA FUNDING LIMITED can offer the construction and modernization of large facilities under the EPC contract.