Li Xu International – LXI Capital (www.lxicapital.com)
As we assist developers in financing projects around the world, we have found a large gap exists between the capital markets and renewable project developers. LXI Capital connects international capital to underfunded renewable projects. As a pilot program, we are currently assisting the markets in the EU countries and United States (US). The fund is led by a group of energy industry veterans with a proven track record of over 110 years of combined experience and hands on project management experience. We are actively seeking projects with the following criteria:
- Projects: Solar, wind, storage; biofuel, biodiesel, biogas; and pipelines, and terminals.
- Stage: Mid- to late stage of development projects. Will consider operating assets and companies (private and publicly traded).
- Location: EU countries and the US
- Contact [email protected]
Developers: A Look at the Real Life of Green Project Finance – Part II
In reviewing hundreds of projects around the world, project developers address many of the same issues when seeking investors for solar, wind, hydro, biofuel, or hydrogen projects. I would like to share a few tips to assist developers in identifying best suited investors for their projects.
Help Investors Understand You
The easiest way to attract investors is the make certain detailed company information is available, including past project references and documents required for Know Your Customer (KYC). Leading international investors in the renewable markets sector are generally from Europe, China, Japan, the Middle East, and US. When seeking projects their first objective is to determine whether the opportunity is legitimate and if the developer can pass KYC. Unlike local investors who are familiar with the market, large international investors need more insights and will require developers to have a website, corporate deck, and details on past projects for reference. This information allows investors to quickly decide if an opportunity fits their investment criteria.
Should I Translate all Documents into English for Foreign Investors?
Although it is nice to have all documents translated into English, it is acceptable for key documents to be in English and other technical documents in the local language(s).
The track record and reputation of all parties involved in a project are important to investors. Developers, EPC contractors, equipment manufacturers, advisors, and current financial institutions play a role in the investment decision. It is easier to engage investors, and big investors are more motivated to offer better pricing, for projects touting well-known brand name developers, EPC companies, and bankable equipment manufacturers.
Solid Underlying Projects Sell
Many African and Latin American projects receive humanitarian related grants and debt financing which can take an extended period to secure. These opportunities may not be a good fit for ambitious private sector developers due to the time required, ticket size, extreme paperwork, and reporting requirements.
A project with a solid underlying will attract international investors from private sectors. To expedite the process, ensure all key elements are in place, including permits and licensing, site and location details, solid studies, reasonable IRR, and bankable Power Purchasing Agreements (PPA).
These tips and more are consistently posted on our social media platforms: LinkedIn, Instragram, and Twitter. For more real-life tips, please follow my LinkedIn posts. www.linkedin.com/in/lixuintl2
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