Debt financing can leverage equity resources and improve returns. Lending opportunities vary with different energy technologies, ownership structures, and the interests and financial strength of the investors. Lenders need to target their sector focus to take such interests into account.

Financing risks rise when projects feature variable output sale prices, non-investment grade off-takers, innovative technologies, limited developer capital strength, or where loan sizes are below thresholds attractive to the major project finance lenders. Prospective lenders can create new lending opportunities by crafting financing strategies to mitigate such challenges.

Birch Tree Capital can assist lenders in clean power projects to:

• Identify suitable industry sectors and specific lending prospects.
• Craft lending programs meshing developer needs with lender capabilities.
• Evaluate lending prospects on a “fatal-flaw” initial review basis.
• Advise on current loan market conditions, including terms and conditions and loan structures.
• Review tax credit monetization structures of project equity.
• Assist in negotiating lender term sheets and full documentation.
• Prepare pro forma financial models of proposed projects.
• Conduct Monte Carlo simulations as part of sensitivity analyses of pro forma financial models.
• Identify other appropriate external technical advisors, e.g., legal counsel, independent engineer, insurance, land, tax valuation.
• Coordinate due diligence review process with the project sponsor and investor’s other advisors.