Project Finance Advisory 2018-04-01T16:37:00+00:00

ABI ANALYTICS

PROJECT FINANCE & PPP TRANSACTIONS

Research, Market Opportunity Assessment, Feasibility Studies, Modelling And Documentation Support Across The Deal Life Cycle

PROJECT FINANCE: RESEARCH & ADVISORY ACROSS THE DEAL CYCLE

Leveraging Our Multi-Disciplinary Professionals With Deep Experience & Know-How Across Local And Global Project Finance Opportunities; Market Opportunity Assessment, Feasibility Studies, Modelling And Fund-Raising Support

ABI’s PROJECT FINANCE & PPP ADVISORY SERVICES

ABI’s Project Finance Advisory Services is focused on helping our clients – developer, financiers, consultants – in effectively assessing feasibility and in implementing project finance and PPP opportunities across sectors and geographies. Leveraging our multi-disciplinary professionals with extensive experience and technical know-how across local and global project finance opportunities, we either complement our client’s in-house team and/or work as an extension of their transaction team.

As project finance is less about number crunching and more about deep-dive understanding of the cash-flows drivers and associated risks, what really differentiate effective evaluation of project finance viability are 1) the domain expertise of the transaction advisor and financial consultant and 2) the rigor of the applied framework. ABI is committed to bring both these aspects on assignments it takes on.

ABI’s core support services include 1) evaluating project finance feasibility, 2) modelling & evaluating financial feasibility and 3) transaction execution support. Our key differentiation is our structured approach that helps us in meeting the two critical requirements of any project finance investments – 1) strategies for optimizing revenue and cash flows, and 2) effective risks identification and optimal allocation strategies among financiers.

We achieve this through focus on multi-pronged feasibility assessment and the integrating and translating information into financial analysis. Our feasibility assessment includes macro-economic analysis, market assessment, policy & regulatory landscape analysis, demand estimation, and physical & technical feasibility studies. All these helps us in a much incisive understanding of revenue & cash flow maximization opportunities and associated risks. We then work with debt and equity financiers to negotiate comprehensive terms for optimal allocation of risks. Our deep-dive analysis and scenarios enable sound decision making by executives involved in the project finance transaction.

ABI’s ROBUST PROJECT FINANCE ADVISORY FRAMEWORK

ABI is an international Project Finance / Public-Private-Partnership (PPP) expert with professionals having deep experience of evaluating and executing multiple project finance investments. For ABI, Project Finance is all about developing an accurate feasibility assessment based on revenue and operational drivers and then developing value and risks allocation among different participants in the capital structure. As we have deep experience representing participants across the spectrum of the project finance transactions, we take multiple aspects into consideration while evaluating feasibility of such transactions.

At ABI, we take pride in our superior service delivery based on a structured approach to conduct incisive analysis. This not only helps us in understanding our clients’ risk profile and financing & investment needs, but also helps us in designing optimal solutions.

ABI follows a structured approach for project finance feasibility, modelling and execution support, encompassing a thorough evaluation of all risk & return drivers

OUR SERVICES PORTFOLIO

PROJECT FINANCE RESEARCH

Market & Investment Opportunity Assessment

Industry and Sector Studies

Policy & Regulatory Landscape

Pre-Feasibility Assessment

Developing Business Plans and Project Reports

PROJECT FINANCE FEASIBILITY

Demand Analysis, Policy and Regulatory Reviews

Financial Feasibility Studies

Financial Modeling and Bid Advisory

Project Appraisal, Risk Assessment & Valuation

Evaluating Refinancing Options

PROJECT FINANCE MODELLING

Revenue Estimation & Modelling

Operational / Cash Flow Projection Models

Project Risks Identification & Optimal Allocation

Optimization of Financial & Hedging Structures

Assets & Portfolio Valuation

TRANSACTION ADVISORY

Information / Pitch Deck

Private Placement Memorandum

Bench-marking With Guideline Transactions

Deal Structuring

Private Equity Raising

Debt Structuring & Mobilization

Contract Negotiation & Deal Closure

PPP TRANSACTION ADVISORY

Evaluating Project’s Strategic Objectives

Evaluating Commercial & Capital Structuring,

Reviewing Feasibility Report

Revenue Estimation & Modelling Maximization Scenarios

Project Risks Identification & Optimal Allocation

Preparing Bid Documents For The Project

RESEARCH & ADVISORY ACROSS KEY SECTORS

ENERGY & POWER

Renewable (Solar / Wind / Hydro)

Power Generation

Power Transmission

Power Distribution

Oil & Gas

REAL ESTATE & INFRA

Affordable Housing

Commercial Infrastructure

Retail & Entertainment

Industrial Infrastructure

Special Economic Zones

ICT & SOCIAL INFRA

Smart City

Education

Healthcare

Water Treatment

Waste-to-Energy

TRANSPORTATION

Highways

Airports

Multi-Modal Logistics

Ports

Railway

WHY ABI ANALYTICS FOR PROJECT FINANCE & PPP ADVISORY

DEEP

EXPERIENCE…

100+ Project Finance Feasibility Studies, Financial Modelling & Transaction Advisory assignments across diverse industry sectors and geographies

Sectors: Real Estate I Infrastructure I Utilities | Manufacturing | Energy & Power | Renewable Power I Agribusiness | Transportation I Smart City | Healthcare | Telecommunication

Region: 20+ countries across Asia-Pacific, the Middle East, Africa, Indian Sub-Continent

PROFESSIONAL

EXPERTISE…

100+ years of combined project finance/PPP transaction experience with deep expertise and knowledge of aspects across the deal cycle – from opportunity assessment to feasibility studies to financial modelling to fund raising and financial reporting & compliance

Team: 10 professionals with 4-principals each having more than 10 years of project finance/PPP transaction experience

Qualification: MBA Finance I CFA I CPA

Experience: Investment Bank I Private Equity I Project Finance I Corporate Strategy I Business Consulting

STRUCTURED

FRAMEWORK…

Our focus on deep-dive analysis to develop an accurate feasibility assessment based on revenue and operational drivers and then developing value and risks allocation among different participants in the capital structure:

Assessing macro & industry attractiveness and associated risks

Estimating revenue and revenue maximization opportunities

Creating dynamic financial model incorporating all associated drivers

Evaluates all sources of risks and structure the project on a least cost basis

Optimal value and risk allocation among the participants in capital structure

Rigorous evaluation of available strategic options

COMPLEMENTARY CAPABILITIES…

Our ability to leverage experienced professionals from various domain to quickly understand sector/geography specific nuances is an added advantage

Sector Experts: 30+ sector experts with 10+ years of average domain experience

Technology Experts: 10+ technology intellectual property experts to help understand nuances of technology and their commercialization potential

Market Research: Internal Knowledge Base of 100+ market research to quickly understand business drivers and sources of value creation / destruction

Database: Internal Database on “guideline public companies” across geographies and growth curve, with their operational and valuation multiples, that helps quickly understand factors impacting valuation

ENGAGEMENT MODELS

Project Finance Advisers are assigned based on the specific requirements of the deal. The engagement is executed through a well-defined and collaborative Engagement Governance Framework as presented below:

ABI brings other relevant experts – as needed – either from its own employee base or from its “experts’ network” spread across the globe.

TRANSACTION STEERING COMMITTEE

Participants:

Client’s Senior Management

ABI’s Senior Management

Role:

Sets the objectives

Oversees the entire transaction and provides necessary clarifications to the team

Reviews the strategic options and take a final decision on the selected strategy

Has the final say on negotiation terms and consideration price

ABI TRANSACTION DIRECTOR

Main point of contact for the transaction

Provides overall direction and guidance to the transaction team

Acts as the key negotiator with different stakeholders

Responsible for review of the financial parameters and the examination of the viability of the Project

Participates in review meetings with the Steering Committee

Brings other Experts & Consultants on the team, as and when required

SECTOR

EXPERT

Evaluates opportunity landscapes and competitive dynamics

Designs the feasibility study and key aspects to be evaluated for techno-economic feasibility of the proposed project/transaction

Refines the proposed business model evaluating with key business drivers

Ensures rigorous evaluation of available strategic options and then suggest best course of action

Presents upside, deal execution scenarios and associated risks for each strategic option

FINANCIAL

CONSULTANT

Appraises the project feasibility from financial perspective

Develops a revenue model and sensitivity to revenue projections

Prepares in-depth financial model incorporating all costs drivers

Evaluates sources of risks to structure the project on a least cost basis

Incorporates advance analytics and scenario/sensitivity for different strategic options

Suggests value and risks allocation across participants in capital structure of the project

ENGAGEMENT EXAMPLES & KNOWLEDGE LIBRARY

CASE STUDY 1

ABI Conducts Technical & Financial Feasibility Study For A Smart City

The Client

A leading Management Consulting firm working for Smart Cities initiatives of the government of an Asian country was looking for end-to-end support on conducting Technical & Financial Feasibility Study for a proposed Smart City. The focus of this initiative was on evaluating a Public & Private sector collaboration model to provide citizen with an integrated and technology enabled infrastructure services.

Scope Of Work

The client needed support across the deal cycle – from pre-feasibility study to detailed technical & financial feasibility on selected smart solution to financial feasibility model to shortlisting and selection of vendors.

ABI Solution

ABI deployed a multi-disciplinary team of domain experts and financial consultants comprising:

  • A technology/ICT expert to study global best practices and visualize the key components of the proposed Smart City and develop technical feasibility of the initiative
  • A domain expert to study existing city infrastructure, conducting market survey and assessment, scenario building and bid evaluation
  • A financial consultant to closely work with technical and domain experts to assess financial feasibility through rigorous cost-benefit analysis

ABI team conducted Technical & Financial Feasibility study covering the following aspects:

  • Global Best Practices: in developing smart cities, key benefits, key risks & mitigates, key learning from earlier project implementation etc.
  • Proposed Services: defining the key components of Smart City – the minimum services and good-to-have services, including secured public wi-fi, smart parking, smart surveillance, smart streetlights, smart waste management & water treatment, smart access management etc.
  • Pre-Feasibility Work: the stakeholders analysis opportunity analysis on long list of proposed initiatives
  • Use Case Analysis: the “As-Is” and “In-Future” scenarios of the infrastructure services and ease-of-life/work for citizen
  • Design Architect: the technical feasibility of proposed services and plans for integrated ICT backbone
  • Environmental Impact: the impact on environment and carbon footprints
  • Economic Feasibility: the cost benefit analysis of proposed services, revenue modelling, capital expenditure and on-going operational costs analysis
  • Financial Benefits: to the stakeholders like citizen, local government, federal government, investors
  • Vendor Selection Mechanism: vendors identification and the bid document (RFI / RFP / Bid Evaluation Models) preparation

Engagement benefits:

  • The client leverages out analysts and domain experts on project basis thereby maintaining a lean and cost-effective structure
  • Pre-feasibility Work:
  • A detailed technical & financial feasibility report, related model and presentation, including
  • Support across the deal cycle
    • Identification of the smart solutions from the long-list, based on in-depth cost benefit analysis
    • Designing the technical and financial feasibility for selected smart solutions
    • Effective vendor selection process – from RFP to final selection based on the bid evaluation model developed by ABI
    • Smart City PMO Management during the smart solutions building phase
  • Time-efficient as multiple teams were able to work on different aspects of the deals, making the client’s team to focus on negotiations and meeting while ABI took care of all the research work
  • Continuous communication and discussion on interim deliverable meant that the entire deal team was aligned with the same objectives