long-bridge

Renewable Energy Finance and Advisory Company - REFCO

Overview
  • Bridge Capital Refco (“Refco”) is a specialist advisor in the renewable energy sector
  • Refco connects credible energy projects with investors. By utilising our technical capabilities, we ensure that investors have the pick of the best energy projects and by applying our financial advisory skills, we ensure the best funding mix for the projects, creating a unique advantage for investors and project developers
  • Converging global trends in energy, industrialisation, technology and the politics of climate change suggest that the most significant resource investment opportunity lies in Renewable Energy
  • Through its ongoing engagement with developers, Refco has a suite of Renewable Energy projects that offer exceptional returns in the framework of a structured, risk limiting, financing mechanism
  • Refco houses a blend of legal, financial and technical skills for successful service delivery and assists projects through:
    • Financial advice including detailed financial modeling
    • Facilitation of funding
    • Debt, mezzanine debt and equity structuring and raising

Refco Services
Refco provides the following services:
  • Financial modeling:
    • Ascertain feasibility
    • Determine optimum project funding
    • Develop specialist financial instruments
  • Project Structuring and Advisory including:
    • Correct mix of various funding instruments
    • Debt advisory and structuring
    • Drafting of project documentation and provision of legal framework
    • Tax advisory
    • Technical advisory especially with regards to financing and Renewable Energy investment
    • Advisory on energy legislation and related developments
    • Negotiating with regulators e.g. NERSA
    • Negotiations with energy providers and purchasers e.g. ESCOM and the SBO
  • Capital raising through:
    • Access to various equity funders including institutional investors
    • Access to debt funders
    • Listing of projects and financing instruments

Energy Project Lifecycle
  • Energy projects, typical of large scale capital projects, follow a structured process leading to financial close - the point at which the project is financed and construction commences
  • After project establishment and an intensive investigation by Refco, investment enables the BFS process to commence, which leads to financial close

arrows2

  • Financial close is the point at which the project receives all its funding for the construction and operation phase, typically consisting of debt, mezzanine debt and equity finance
  • We define the Bankable Feasibility Study (BFS) process to include all activities necessary to get to the point of financial close, including completing independent technical feasibility studies and obtaining the required permits and licenses
  • As indicated by the global investment in renewable energy, there are substantial funds available to finance qualifying projects after the BFS demonstrates project viability
  • However, the higher risk money required to complete the BFS process is not available through conventional channels. There are no well established venture capital mechanisms to assist this phase, and conventional bank funding will not contemplate risk of this magnitude
  • Refco has structured a set of financial instruments to enable qualifying investors to participate in funding the BFS process and to earn returns commensurate with venture capital equity expectations
  • The instruments are called Renewable Energy Feasibility Notes

Project Pipeline
  • A Key element of our business is a pipeline of quality RE projects
  • Our team of experts source projects through an extensive network including:
    • Carbon professionals
    • Energy specialists
    • Leading trade associations in applicable fields
    • Technology providers
    • Project developers

Project Filter
  • We filter projects through a rigorous compliance examination to ensure:
    • Project financial and commercial feasibility
    • Technical capability and proof of technical and operational competence
    • Project team credentials

Our project filtration process comprises of seven distinct phases:
  • Conceptual
    • A project concept formulated by the project developers which we consider on a preliminary examination basis to meet our criteria
  • Pre-Scope
    • An exhaustive internal Refco study to determine early stage project feasibility
  • Pre-BFS
    • All project documentation completed and project ready for BFS funding
  • BFS
    • Bankable Feasibility Study has commenced
  • Banked
    • Project is fully financed and ready for construction and implementation
  • Construction
    • Project is in construction
  • Operational
    • Project is in operation

tunnel2