The challenge

Sponsors of large and complex projects worldwide look for finance from specialist investment banks. These projects all have a variety of technical, environmental and social risks and others which can include stakeholders, organisation and management, as well as political and contractual.

Lenders expect all risks to be quantified prior to financial close in a due diligence, so asset integrity, HSE and environmental, social and legal aspects of the purchase / sales agreements and procurement contracts must be assessed as well as the technical and financial models. The lenders also require supervision and monitoring of the construction and operational phases in order to raise a timely Red Flag if the loan repayment is under constraint.

Our approach

Working closely with the investment banks we establish a dedicated team of engineering, social, environmental, economic and legal professionals to perform the due diligence and/or independent monitoring. We use experts from our local offices if necessary hiring external specialist to complement our own team.

We fully understand and have extensive experience in assessing compliance towards lender’s environmental and social safeguards requirements (IFC Performance Standards, EBRD Performance Requirements, Equator Principles). We are successfully advising financial institutions and private clients on these issues.

Our solutions

Our due diligence and monitoring deliver pragmatic, technical advice focused on project content. We emphasize dialogue and communication both within the team as well as externally with project stakeholders. Our reporting identifies and quantifies the risks, and includes the likelihood of occurrence as well as possible mitigation measures. This list can be used for highlighting focus areas for future observation as the project progresses. The report also contains requirements that can be included in the Common Terms Agreement, as a Condition Precedent (CP) or in an Environmental and Social Action Plan (ESAP).