Getting Started with In3 CAP Funding
In3 Completion Assurance Program (CAP funding) pre-qualification is fairly easy, once you are prepared, and consists of the following basic information, broken into the sequence of steps most often used to produce the Six Essentials that secure your project funding. This funding delivers advantageous terms and is structured to solve four notorious problems with the traditional approach to mid-market project finance.
For a stepwise guide (the points below describe the information required in greater detail) go here.
- Project Name: often uses the project type or size, industry/sector or technology, and location
- Example, if the Type/Size is “100MW utility-scale generation”, Industry Sector is “Solar/PV” and the Location is “Portugal”, then an appropriate 3-6 word name might be “100MW Utility-scale Solar/PV power generation (Portugal)”.
- Budget: Total Capital requested, in US$ or Euros
- Uses of Funds table — show the categories and proportion that add up to the total budget. more
- Financial Guarantee — indicate if a Bank Guarantee / Standby Letter of Credit (BG/SbLC) or Avalized Promissory Note (AvPN) will be used during construction, or a confirmed Sovereign Guarantee (SG). Indicate the amount of the guarantee as either US$ or Euros. More on financial guarantees
- Bank name and Branch location to be used for the RWA Letter, an essential part of the package more. The name(s) of the involved bank offers, if available, would also be helpful at this time.
- Project Size, Description, and Location: Attach a brief project summary explaining the current status, location, developer background/profile, revenue model (how the project will generate cashflows, and unlevered IRR if known), other principal parties and counterparties, such as key vendors, offtakers, etc.
If financing a portfolio of smaller projects to reach our CAP funding $25 million minimum, please describe this in a synopsis (paragraph) along with the points above. If a Sovereign Guarantee is being used, provide evidence of access to that country’s Ministry of Finance and public-private cooperation/partnership, then obtain support from a confirming bank. If seeking one of our debt finance programs, see our more rigorous Project Financeability Checklist
Once you are certain the project fits our basic conditions, please apply here. Optionally, you may want to download, fill in and upload our Pre-Qualification Worksheet as an attachment when applying.
Except when otherwise shown (see our New Client Resource Guide), we will usually respond within 48 hours. If we can verify that the proposed project(s) meet our qualifications for funding, we will then ask for three more items:
7. Proposed Guarantee Verbiage for either the SWIFT MT760 instrument or Promissory Note (per item #4 above). Download and fill in the appropriate MS Word template, available at CAP profile builder.
8. Monthly Draw Schedule (see page 3 for an example), tied to the uses of funds, item #3, above), which will need to gain approval by the funding bank. Notes:
- We do not support large initial draws, common with mergers and acquisitions (M&A) but rarely necessary when there is new construction involved; see this alternative funding mechanism if M&A is what you require.
- Indicate the number of years interest-only availability (deferral of principal payment) and loan “tenor” (repayment period).
9. Bank’s Ready Willing and Able (RWA) letter (for #4, the guarantee, per the issuing bank, #5, above) to be signed by the issuing bank officers and send via Email. For a Sovereign Guarantee we will ask for a confirm bank’s letter, not an RWA letter. See also a different bank letter is used for the Endorsed Promissory Note instrument. Note that these letters do not obligate the bank to do anything at this time — the task is simply to review the guarantee language and make sure they are comfortable with it, per item #7, above, or so we can counteroffer variations, as many banks use their own format.
Which type of guarantee instrument is best for your situation?
As the final pre-qualification step, check that the banker involved in the completion assurance guarantee (item #4, above) will agree to actually send the guarantee instrument when the time comes, once the project funding is secured through signed contracts. Download the preferred MS Word templates (see proposal builder) and relay that template to the issuing bank.
You can provide it to us unsigned, at first, along with any questions or for pre-approval.
Once we receive it signed, or other verifiable evidence that the sending bank is on board, and will follow through once we reach that step, then we will respond with the funding bank’s name and location, and ask for all the other pertinent project documents (a dataroom, typically) in order to conduct our due diligence, and make a binding offer, which usually takes no more than 2-4 weeks.
Upon delivery of these items, if you have not already done so, please register your project information at in3finance.com/register.
Upon completion of our due diligence, if all is in order, our capital partners will make a binding offer in the form of a Loan Agreement and Share Purchase Agreement. Complete end-to-end process here, 1-page PDF outline.
Got questions? Contact Us. We look forward to doing business with you!