Travelers Financial is active in structured project financing for the energy sector, with particular interest in “green” and alternative energy projects backed by long-term power purchase agreements. Small hydro, biomass, wind, wave and community energy projects offer significant potential for contributing to Canada’s future energy needs using under-utilized energy resources.
Our primary focus includes:
Travelers is also interested in securing financing mandates for the following requirements:
Larger projects may require the assembly of a syndication group to complete the required financing.
Credit enhancement techniques such as third party guarantees or collateral guarantees may be used where the Project Developer’s equity is insufficient to meet the requirements of senior lenders.
Designed to pay out third party construction lenders at project completion; typically Travelers provides an option to fix the interest rates for the full amortization period of the project – up to 20 years.
Short-term financing with progressive drawdowns according to construction expenditures; typically Travelers provides floating rate financing during the construction phase.
Construction and Takeout Financing may be offered in a combined facility, that offers the advantages of “one-stop” financing, with the option to lock-in a long-term rate at the commencement of the construction phase.
To source short term and / or long term financing, structured with financing terms that meet the equity requirements of construction and / or takeout lenders.
To source share capital investments from institutional and private equity investors.
To attract suitable industry partners capable of bringing development expertise, construction management experience and / or capital to the project.
Larger projects may require the assembly of a syndication group to complete the required financing.
Credit enhancement techniques such as third party guarantees or collateral guarantees may be used where the Project Developer’s equity is insufficient to meet the requirements of senior lenders.