Dantata Solar Ltd advices solar PV project developers on the intricacies of project finance. This includes long-term financing of renewable energy projects based upon non-recourse or limited recourse finance structures.
Project financing is a loan structure that relies primarily on the project's cash flow for repayment, with the project's assets, rights and interests held such as secondary security or collateral. This is a financial structuring in which the debt for the solar project and equity used to finance the project are paid back from the cash flow generated by the project.
Project finance is especially attractive to the private sector but requires very good work in initial stages of the project and investment in feasibility studies and business plans (including cash-flow models etc) to ensure that third-party finance institutions have a sound basis to make their decisions regarding providing debt finance.Our experts have extensive experience in the solar PV project development sector as well decades of experience managing and drawing up risk mitigation plans for projects in the sub-Saharan region and especially in Nigeria.