Raising your project finance with a PFX Bond issue

 

Thank you for your interest in raising your project finance with a PFX Bond issue

The accepted definition of project finance is: Investment predicated on the track record and financial stability of whoever is contracted to buy the output from the built project, with the same criteria applying to all other counterparties to the project.  The assets and balance sheet of the borrower come a distant second to these considerations.

To qualify to enter the PFX Bond market you MUST have an off-take, power purchase or management and operating agreement, either completed and signed or in development, with a party contracted to your project.  You cannot issue your Bonds until all your contracts, agreements, permits, permissions and other supporting materials are finalised.

Insurance Wrap
All your documentation will be reviewed by the insurance Wrap underwriters, rated ‘A’ or better by AM Best, Fitch, Moody’s or S&P, who will produce the overlapping policies that make up your Insurance Wrap.  The Wrap replaces the due diligence that you would have previously experienced when working with individual investors. 

The Wrap underwriters conduct their due diligence in granular detail and then, also, insure all the risks, contingencies and events that their due diligence has exposed.  Backed with their own money and credit agency ratings.

You will work with your selected Issuing & Fiduciary Agent (Agent) to produce your full prospectus and data-room.  As part of the preparation for issuing your Bond, you will work directly with the PFX appointed insurance Wrap lead underwriter, so it is critical that you have all your contracts and agreements, including land titles (which may be completed on financing) and other documentation 100% prepared.  Your Agent will assist in this, but it is your project and the ultimate responsibility for compliance rests with you.  It is quite likely that the underwriters will ask further questions, the answers to which you will need to add to your Prospectus.

Once your Wrap has been completed, the credit agency ratings of all the participating underwriters are transferred to your Bond.  Making it one of the safest and most secure assets in any investor’s fixed-income portfolio.  

The PFX Bond market smooths the path for capital raising projects.  But it is our long experience at PFX that the vast majority of applicants are not fully aware of what investors need to see before they will take your opportunity seriously.  From our intake process through to the issuance of your PFX Bonds we have put in place the essential step-by-step support and guidance to ensure you can work towards a successful PFX Bond Issue.

In return, we and our Issuing & Fiduciary Agents ask only for complete transparency in all your dealings with us. 

Please download the PFX Bond Issuer’s Guide.  This provides further information and presents fixed and variable costs of your bond issue.  If you are happy with what you see you will then be able to pre-register and add your project(s) to the ‘Coming issues’ list. 

[PFX Bond Issuer Guide]