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Greenfield Projects

Phoenicia Financial ensures that the Greenfield project is backed by a substantial strategic equity investment, has an experienced management team, uses proven technology, and executes off-take contracts prior to financial closing. Identify EPC, coupled with independent analysis supporting favorable supply/demand dynamics and a lower-cost position.

In Phoenicia Financial we do support the promoters of Greenfield projects in assessing the creditworthiness of the project by considering the following factors:

1- Strategic Equity:

There is perhaps no greater validation for an investor that a prospective Greenfield project might be viable, than when the equity backing the project is strategic. A Greenfield project in any sector backed by an equity investment from a company in the same sector is strategic equity. Phoenicia Financial contacts investors seeking to finance in Greenfield project with strategic equity investors who play a major rule in defending and supporting their equity if an unforeseen negative event occurs.

2- Experienced Management Team:

As a Greenfield project is a start-up business, Phoenicia Financial ensures the involvement of a management team with a history of success with similar projects.

3- Proven Technology:

Phoenicia Financial ensures that the underlying technology is current, and at the same time proven.

4- Demand and Supply:

To help validate the need for the construction of any Greenfield project, Phoenicia Financial will provide the investors with an independent market analysis as part of the due diligence process in order to find out whether the demand is expected to exceed supply or not.

5- Lower Cost Producer:

Once convinced that demand will exceed supply , Phoenicia Financial will provide the investors with an independent validation that the project will be a lower-cost producer, so in the event demand declines, investors shall be sure that the project they finance is not likely to shut down.

6- Off-take Agreements:

Where capital costs are used to extract the resources (product/service) , Phoenicia Financial ensures that the buyers of the output of the Greenfield project such as mining, power plants, ...etc. are lined up ahead of time.

7- Equipment, Procurement, Construction (EPC):

Phoenicia Financial supports the project by identifying who will build the project, ensure that the identified firms built similar projects on time and on budget, and ensures that the EPC is a creditworthy entity and they do stand behind their work.