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Howden – Equity contribution guarantee syndicated facility

Renewable Energy

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About the product/service

An equity contribution guarantee facility allows renewable developers to defer payments to their project finance lenders.

This security provides the project finance lenders with enough protection to allow developers to negotiate injecting equity towards the end of the project (i.e. once the project finance loan has been fully drawn down).

This significantly enhances the IRR of projects, as well as allowing developers to finance more projects without having to recycle equity on existing projects.

Supporting greener outcomes

This product is one of the key financing instruments in the renewable sector, allowing developers to undertake and finance more projects. It plays an important role in growing global renewable energy production output.

Enabling customers today

Howden worked with Mainstream Renewable Power to more than double a multimillion euro trade finance facility. The facility supported the renewable developer’s guarantee requirements on a USD 1.65bn Andes Renovables portfolio in Chile.

It is the first time project finance lenders have accepted a surety as issuer of such an obligation and the first time a surety has issued on behalf of sureties and banks.

Contacts

James Souter

Head of Surety

Charles Langdale

Head of Climate Risk and Resilience

Stuart Martin

Climate Risk and Resilience

Victoria Maynard

Climate Risk and Resilience