Projects with clearly defined cash flows such as large investments, pools of similar financial or physical assets or project developments require financing structures taking into consideration the risks and mitigating factors deriving from the underlying asset. In this context, our cash flow model and our profitability analysis is a key element of our advisory services. Our planning tool delivers quantitative indicators which provide a basis for an informed decision making to our clients. This allows to determine adequate terms and conditions for each capital tranche.
As an alternative to on balance sheet financing, structured finance solutions are well suited for opening up new funding sources. In this respect capital markets offer the opportunity to finance equivalent and matching assets through risk-minimising structured finance solutions. Non- or limited recourse structures allow not to expose the entire balance sheet of a company to a specific asset risk. In addition, risk minimising elements such as overcollateralization, tranching or insurances can provide credit enhancement to improve financing costs.
