Project background
We were approached to mediate a financing solution for a major refinery project, with the state providing a 10-year sovereign guarantee. The goal: a model that attracts institutional investors, aligns their interests with project success and combines leverage with robust capital protection.
The structure
The developer secured an investor prepared to deposit EUR 200 million in a custody account for five years. The capital remains entirely under the investor’s control and benefits from the sovereign guarantee; the combination of both provides the leverage for USD 4 billion of structured finance proceeds.
- Year 1: USD 100m, 200m, 300m and 400m per quarter, USD 800 million in total
- Year 2: USD 500 million per quarter, USD 2 billion in total
- Year 3: USD 600 million in each of the first two quarters, USD 1.2 billion in total
- Grand total: USD 4 billion, deployed over 2.5 years
Investor terms
The investor receives a 15 percent fixed annual return on the committed capital for the first five years, paid quarterly, an equity stake in the refinery, and a 10 percent profit share for five years once operations commence. All agreements, guarantees and projected financials are fully transparent for due diligence. After five years, or if return targets are unmet, the investor is free to redirect the capital.
The figures presented are projected targets based on the planned execution of the project and are subject to change based on operational, market and regulatory conditions.