Financing of Renewables through => Crowdfunding => 2-Equity => 2-Debt
Hi. I'm Eric.
I'm coming originally from an Engineering Project Management background (Master's of Automation & Robotics) with 10 years of corporate eXP delivering engineering projects all around Europe.
And for the last couple of years - I've been working on Project Finance deal origination in Europe / NorthA, Africa & Asia within my business.
BIG PICTURE:
I wonder thoughts of more experienced IB, PE, FO & HF Professionals from this forum about this specific Project scenario / financing structure:
INPUTS:
1. Solar energy farm projects: $1M-$100M with or without energy storage @ $600-1,000 per kWp.
2. In Europe (UK & Poland),
Africa (Nigeria, Ghana, Kenya & countries that use West & Central African Frank to de-risk forex projects: XAF & XOF currency [which are guaranteed by EU / French treasury])
& Asia (mostly India, Bangladesh & Pakistan)
We have some representation in some of the above territories.
STRUCTURE WE HAVE IN MIND:
PREP:
1. Get land from the local government as PPP OR local people as JV (PPP preferred).
2. Get permits.
3. Get a Power Purchase Agreement (PPA).
STEP 1 - CROWD FUNDRAISE:
Crowdfunding to get 5-15% of total project cost as Equity contribution (or preferably Bond @ 5-10% ticket to the same 5-15% of costs)
STEP 2 - EQUITY FUNDRAISE:
Family Office Equity (or PE?) to match contribution from Step 1 (and get "serious" backing for STEP 3 with Institutional Investor)
STEP 3 - DEBT FUNDRAISE
Top up with Debt from DFI (Development Finance Institution) / Sovereign fund that often have Mandates for Decarbonisation / Renewables @ 4-10%, especially in developing geos.
Happy to answer any questions to add to this Big Picture.
The main thing is the starting capital (STEP 1) - how is this sort of "Skin in a game" perceived by more Professional / Institutional stakeholders in STEPS 2 & 3?
Or potentially - how would you approach a starting capital in this scenario?
I'm happy to hear your thoughts guys about this or any alternative structures.
And connect with anyone who could help with any of these steps / has a business interest in similar projects (plus potentially Affordable Housing, Food & Energy production which we also originate).
All the Best,
Eric
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