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Fully financed infrastructure & renewable energy projects for developing nations
Almost all developing nations suffer from a credit market handicap because they are below investment grade. HyFi’s team has a unique blend of expertise to overcome the following five significant challenges:
- Persuading large financial partners to do business in developing nations.
- Persuading world class OEM’s and EPC’s to do business in developing nations.
- Architecting an insurable project/deal eligible for credit enhancement.
- Ensuring financial obligations do not lower a sovereign credit rating, or fall on their balance sheet, and yet maintain a deal standard of being bankable.
- Attracting and engaging with an insurer to uplift the credit rating to at least investment grade, making financing possible and lowering the interest cost of debt financing.
Case Study 1
South Africa
HyFi has entered a joint venture with POWGEX ENERGY called “POWGEX-HyFi” to build, own and operate renewable electricity generating facilities for the next 45 years in South Africa. HyFi has put together a consortium of banks, investment banks and institutions approved to provide structured project finance for the build out of as much as 300 gigawatts (GW) of utility scale and rooftop solar electricity, wind, green hydrogen production and potentially atmospheric water generation.
The projects are confirmed to be guaranteed by Power Purchase Agreements from established government bodies. In the first year it is contemplated that installations will begin in the in the first half of 2024 for approximately 1 GW of power at a cost of approximately $2.5 Billion per each 1 GW, and subsequent years will target up to 6 GW of installed capacity, per year, with the help of world class OEM’s and leaders in the renewable energy industry such as large co-developers and EPC’s.
HyFi is in the process of arranging the construction financing and subsequent refinancing via bond issuance for these renewable energy facilities and also the OEM, EPC and O&M partners. Several world class infrastructure investment banks, venture capital and infrastructure funds and A rated (or better) insurers have confirmed their interest in participating. In addition one of the world largest solar panel and battery manufacturers as well have expressed interest, as a supplier and co-developer.
Case Study 2
Vietnam
HyFi and its sister company WPP Energy, have executed a tri party Memorandum of Understanding with Dong Do JSC. DD JSC is an International investment promotion company formed by the Vietnam Government for projects of many state-owned companies and prestigious corporations in Vietnam. The MOU is titled “Comprehensive Cooperation of Investment and Development Strategy in Vietnam”. HyFi and WPP have been invited to create and arrange important outcomes in the developing nation of Vietnam. As such HyFi and WPP have received an exclusive initial priority project list to develop renewable energy, infrastructure and other important projects consistent with the UN’s 17 SDG’s in the following provinces:
Hà Nội
Ninh Thuận
Đà Nẵng
Khánh Hoà
Đồng Nai
Hồ Chí Minh
Bà Rịa – Vũng Tàu
Cần Thơ
Cà Mau
The initial project list has an expected development cost of approximately $33B
The Vietnam government recognizes the potential for a ‘green industrial revolution’ to boost domestic economic growth, employment and the people’s standard of living. Much of the equipment required for these projects will, in due course, be built in Vietnam, making the country an Asian powerhouse for renewable technology.
HyFi and WPP are mobilizing the necessary technology, and arranging for the provision and financing of equipment and services.