Cash-Flow Backed Financing for a Solar Provider
Rooftop solar provider, UAE
The client is the UAE subsidiary of one of Asia's leading rooftop solar providers to the commercial and industrial sector, whose parent pioneered the energy sale model and has installed over 350 projects for more than 250 corporates. Three years into the UAE market with 14 MW installed and over 40 MW under installation, the business needed a consistent supply of capital in a sector where conventional bank financing was difficult to obtain.
Scope of work
Alternative capital explored to fund growth, while active dialogue was maintained with leading banks to keep them updated on developments in the commercial and industrial rooftop solar sector.
Cash-flow backed structure conceptualised around the projects rather than the corporate balance sheet:
- Operating projects transferred into an asset company
- Equity and debt capital infused in proportion against those projects
- The structure designed to be repeatable for subsequent tranches as capacity grows
Investor perspective applied alongside the client's, so what was offered matched what an investor would underwrite in a nascent sector.
Execution managed from investor engagement through terms negotiation and due diligence support to closure.
Outcome and value
- Growth capital raised in a sector where conventional bank financing was limited.
- Funding matched to the project delivery schedule.
- A repeatable template established for future tranches.
- Lender awareness of the sector built alongside the transaction.