For many sponsors and advisers, project finance can seem technical, and overly dependent on lender preferences. In reality, the process is more disciplined than mysterious. A project becomes financeable when its risks are identified early, allocated to the parties best able to manage them, and...
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In project finance, the term 'bankable' carries significant weight. A bankable project is one that financial institutions are willing to lend to with confidence. Its a project structured comprehensively that lenders can clearly assess risks, verify cash flow adequacy, and document their security position. Achieving bankability is not merely...
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In project finance negotiations, recourse frequently becomes a contentious sticking point. Sponsors push for 'non-recourse' structures, arguing that project finance should isolate risk and avoid parent company exposure. Lenders counter with recourse demands, citing inadequate risk allocation or incomplete security packages. These negotiations often devolve...
Read MoreCapital structures are vital instruments for financing operations, maintaining assets, and driving business growth. They play a pivotal role in shaping and determining the financial health, profitability, and longevity of any business. This article explores the concept of capital structures, the types of capital structures,...
Read MoreOrganisations succeed or fail not because there was no precise business strategy, nor due to the absence of a market for their services and products. Beyond inanimate resources such as AI, machines and automation, software, and programmes, businesses need people to effectively oversee and manage...
Read MoreThe energy sector powers our lives, but few people consider the financial systems behind it. Every oil rig, wind farm, and solar panel relies on financial institutions to function. These institutions fund massive energy projects and help manage risks, ensuring energy production remains stable. Today, as...
Read MoreOne of the major questions an entrepreneur must ensure to address is how best to identify and analyse industry dynamics. This is required so as to give clear and deep insights as to the workings of the industry their businesses operate in as well as...
Read MoreFor over 20 years, the agricultural sector, one of Nigeria’s largest contributors to GDP and the largest employer of labour, remains underutilized, despite the fact that it is reportedly touted as Nigeria’s untapped route to prosperity. From a total land capacity of about 125 million hectares,...
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In project finance, control over cash flows determines who gets paid, when, and how much. This disciplined approach to cash management is one of the defining features of project finance. It directly influences sponsor returns, lender risk exposure, and overall investment outcomes. This article explains how cash flow waterfall works,...
Read MoreLandmark merger and acquisition transactions that occurred across the Nigerian banking industry in 2006 will go down in history as some of the board room events that have most helped to stimulate Nigeria’s economy following the deepening of financial services industry as a result of...
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