Benefit

The objective of the service is to provide the optimal financial package for a given project in an emerging market. This entails everything from preparation of valuation models to negotiation with financiers.

Project financing is not just about obtaining commitment from investors and lenders. Just as important, it is a question of financing the optimal legal and operating structure that will enable the project under consideration.

The optimal financial structure varies greatly from project to project. However, for subsidiaries and joint ventures, it is often a question of obtaining a working capital financing and possibly term lending to cover part of the capital investments, and perhaps a financial co-investor. For larger project financings and trade finance transactions, it may be a question of obtaining as much leverage as possible, often through syndication of several lenders.

DIBD has an extensive network of commercial banks, development banks, private equity funds, development finance institutions, grant agencies etc. DIBD has developed and manages www.frontierfinance.org, which is a portal containing information on finance opportunities in emerging markets.

DIBD also offers assistance in the identifying and negotiating with financial partners in emerging markets.

For whom?

DIBD's services in the area of finance are relevant for companies interested in obtaining external financing for new subsidiaries or projects. DIBD primarily works with the management, in this case usually the CFO and CEO, to arrive at the best possible solution.

Process

DIBD works closely together with the project team from the Danish company, with whom the financing needs are defined and the approach to obtaining external financing is discussed.

On the basis of the agreed structure, DIBD develops a specific financial model and drafts a financing proposal for the benefit of internal and external stakeholders such as banks and investment funds. 

If the proposal is well received with financiers, negotiations are initiated in close co-operation with the Danish company regarding terms and conditions for the financing.

Terms

The Danish company is obliged to commit the necessary management and other resources to the project. A close dialogue is essential in order to ensure an effective procurement of capital.

Price

The price depends on the nature of the project and the amount to be raised. In certain cases, DIBD may consider making its fee contingent upon successful rising of capital. A proposal containing price and terms will be provided after an initial meeting with the client.

Contact

Jacob Kjeldsen

Daniel Schultz

Related products and services

Business planes and feasibility studies

Training programmes

References and partners

DIBD  Sundkrogskaj 20 DK-2100 Copenhagen Ø.  Phone: 3377 3377  Fax: 3377 3300  E-mail: dibd@(if you can see this please update your browser)di.dk