Project Finance

The CoverMark team provides insurance and risk management advice on project finance transactions, primarily to lenders, sponsors, third party equity investors, bond underwriters and other interested parties, in all parts of the world.

The team can advise on projects in a variety of industry sectors including Power, Petrochems, Transport, Renewable Energy Mining, Leisure, Healthcare and Telecommunications.

As such, the team has substantial experience and understanding of the key issues to be addressed and resolved to satisfy lenders, including the:

  • contractual framework within which projects operate
  • need for prompt identification of potential 'show-stoppers'
  • typical fast-track time pressures
  • expectations and methodology of lawyers, financial advisers and other professional advisers
  • sponsors' commercial pressures
  • current controversial issues
  • best practice with regards to insurance solutions
  • how to work effectively and constructively with the sponsor and its insurance broker
  • how to summarize the treatment of fortuitous risks, showing those dealt with contractually, those protected by insurance and those left with the project company
  • syndication issues

In addition to the above, we add value by reviewing other key issues such as:

  • the interface between payment mechanisms and the revenue protection insurance
  • risk identification, apportionment and accountability
  • the reduction of borrowers' exposure
  • the protection of lenders' interests.