Project Finance

Project Financing and Structuring

Project financing is a common funding method for infrastructure, energy and PPP/PFI/BOT projects. This form of financing is normally adopted when a project is established as part of an SPV (single or special-purpose vehicle) and based on a predefined cash flow derived from the main activity of the SPV, such as revenues from the sale of electricity generated by a power plant or the sale of water from a desalination facility.

As a rule, this form of financing relies solely on the repayment capacity of the Special Purpose Vehicle (SPV) and involves non-recourse debt. Consequently, it is crucial to thoroughly examine all stages of the transaction and manage the debt-raising process with potential lenders. This begins with the initial creation of the financial model, continues through the development of the financing structure, and includes leading the negotiations for the financing terms and conditions.

Beta Finance regularly leads a variety of financing processes for clients from across the entire industry. Our intimate familiarity of the needs of the various partners to these projects – including the developers, lenders and various state entities – enables our team to provide significant added value to all our clients.

Following is a list of our diverse project financing services:

Bid submissions for complex PPPs/BOTs tenders

Our team has extensive experience in supporting numerous companies and developers in bidding for complex tenders. The consultancy process ranges from drafting complex tender bids on behalf of developers to providing professional support to inter-ministerial tender committees, including writing and drafting various tender documents for a large number of national-scale projects. 

Our unique, invaluable experience – based on a winning combination of proven experience in the public sector and intimate familiarity with the business sector – provide our team a unique viewpoint coupled with the ability to reconcile theory and practice throughout all the project stages.

Over the years, we have taken part in most of the largest energy and infrastructure tenders in Israel, providing financial and strategic consultancy services for developers, lenders, and various government entities across a variety of PPP/BOT projects in the fields of conventional energy, renewable energy, transportation, desalination, and more.

Following is a list of the diverse tender services we offer:

Complex financial modeling

Every significant decision-making process is based on a financial model that is designed to inform decision-making, taking into account the various risks facing decision makers. In light of the considerable complexity embodied in these processes, creating financial models in accordance with accepted standards is a crucial tool designed to enable the various stakeholders to analyze the economic feasibility and the various financial risks involved.

Beta Finance team works closely with numerous clients in multiple sectors, with specific expertise in infrastructure and energy projects. Beta Finance provides constant support to numerous companies in preparing financial models for diverse projects and transactions in general, and complex financing models based on the project financing method in particular.

Following is a list of the diverse financial modeling services we offer:

Debt Analysis and lenders

In addition to our broad experience in designing financial models, Beta Finance team provides financial model audit and review services. The purpose of the model audit is to ensure that the financial models have been adequately prepared. The main goal is to enable decision makers rely upon the financial results presented, in a clear and consistent manner with the documents of the transaction in question, and that the sensitivity analyses appropriately reflect the various exposures embodied in the project.

Throughout these various projects, Beta Finance provides professional opinions pertaining to the compliance of the various financial models with the terms and conditions of the transaction, and these opinions form the basis for action taken by the various entities. Over the years, the model review and assurance processes have generated considerable value for the various parties to a transaction, which builds the common basis of trust required by all the parties and their ability to rely on the results generated by the financial models.

Following is a list of the diverse model audit services we offer:

Regulation – gas, electricity, water

The energy and infrastructure sectors are heavily regulated in the respective markets. Our team attributes critical importance to gaining in-depth familiarity with the various regulations, as well as the ability to analyze them, to provide the various stakeholders with profound insights as to risk analysis and business activity in that specific sector. The unique combination of our broad experience, both on the domestic and international markets, enables the Beta Finance team to provide relevant solutions and significant insights across the entire consultancy processes in various regulatory fields.

In addition, as the infrastructure are generally public services in essence, the correct understanding of the relevant regulatory framework and their impact on the various decision-making, investment and valuation processes is of vital importance.

Following is a list of the diverse regulatory consulting services we offer:

Strategic consulting for infrastructure and energy companies

The infrastructure and energy sectors are characterized by professionalism based on in-depth familiarity and years of acquaintance with the various entities operating in this sector, both in Israel and abroad. We firmly believe that our focused specialization in this sector has been clearly illustrated in the broad variety of consulting projects we have led in these fields.

Beta Finance team has led many projects – from drafting financial bids for tenders, through capital and debt raising required for establishing projects amounting to tens of billions of shekels, and culminating in providing support and assistance for various financial issues arising over the course of a project’s term. We are convinced that this wealth of experience enables our team to support strategic decision-making processes of the various players in the market – companies and developers, investment funds, banks and other financial institutions.

Following is a list of the diverse strategic consultancy services we offer:

Selected Projects