Comprehensive Project Finance Tools, Guides & Definitions
This KnowledgeBase (a curated library) of free guides, educational articles, templates and checklists serve as a resource to financial practitioners, finance-savvy project developers, their sponsors and agents to accelerate and streamline fundraising via our Completion Assurance [Capital Guarantee] Program™ (what makes CAP funding different).
If you or your clients are unfamiliar with the advantages of using Completion Assurance Guarantees for project funding, start at the top of these materials and work your way down the list as they gradually become more detailed and technical. Any resource with a * is more advanced, as part of our Practitioner Series.
- Key client-centered resource materials for In3CAP project funding of $25 million or more: in3capital.net/RESOURCES
- NEW for 2024:
- 1-page CAP Funding Tear Sheet (PDF) for developers and sponsors
- 100% CAP funding as equity with just 25% cash: Compare In3 CAP’s guarantee to cash deposit
- Simplified stepwise guide to CAP pre-qualification: revised procedure to include cash option
- What tangible assets can be used to back an SbLC or directly a completion security?
- Description of “Done For You” (DFY) guarantee services
- Checklist to qualify for DFY
- Current focus sectors, which currently includes (as of Summer 2024):
- Waste-to-Value, such as tire pyrolysis (2-min video) or biomass to biochar + energy
- Regenerative Design for master-planned “smart cities” and eco-resorts, green building materials like timber bamboo, sustainable food systems, and other nature-based solutions to Climate Change
- Renewable energy, storage, hydrogen, solar, wind …
Ask us for our latest presentation to introduce your project to potential CAP guarantors.
3. FOR CAP GUARANTORS (prospective project “sponsors” or Impact Guarantee Fund subscribers):
- Landing page for prospective guarantors
- Guarantor’s 1-page CAP overview (“teaser”) — for third party asset owners interested in the opportunity to guarantee one or more projects, bespoke or via IGF
- Six-Question Guarantor Survey (optional) for more tailored offerings.
4. FOR FIRST TIME CAP Funding Applicants:
- Streamlined Introduction to CAP financial guarantees
- Six Simple Steps to securing CAP funding — NEW
- How to Get Started and Pre-Qualify (deliver the “Six Essentials”) | Complete Stepwise Guide to CAP fundraising
- Other guides and tools, depending on the situation:
- Simple Guide to Sources & Uses Statements
- Step-by-Step Guide to Sources/Uses Statements with Monthly Draw Schedule examples
- What Safety Measures or Checkpoints are built into the process, as part of mutual KYC / AML procedures? (Also explains why we won’t make the first move to satisfy KYC.)
- Ask us for our 2-page guide to securing the Completion Assurance Guarantee
- Help with gathering CAP’s basic information requirements
- CAP Proposal Builder (all the tools developers need to qualify and expedite funding via CAP, including the above 2-page worksheet)
- Compare the 3 main options for CAP funding Security:
5. Introductory (background) Articles:
- Project Development and Finance 101
- Preparing a financeable project package (checklist)
- How to expedite Project Finance using Completion Assurance Guarantees
- Deciding if a Completion Assurance Guarantee CAG) has advantages for your situation
- Guarantee options, qualification, and risk — Why Guarantees make all the difference
- How are we different? Introduction to In3’s Completion Assurance [Guarantee] Program™ (describes purpose, objectives and advantages)
- Compare and decide on the best type of guarantee
- Standby Letters of Credit: article | SbLC essentials
- Introduction to a Bank-Endorsed Promissory Notes
- How to obtain and use a Ministry of Finance Sovereign Guarantee
- Other options include Blocked Funds, advance Payment Guarantee, or several variations on Standby LCs.
- CAP Requirements or conditions to receiving CAP funding
- CAP Indicative Terms | Note: CAP’s Cash Deposit terms are the same (with no guarantee), just that the cash is slightly more valuable on a per-dollar basis.
- Compare project funding options for up to 100% financing
- How to succeed at CAP fundraising step-by-step: Complete Stepwise Guide
- How to secure a CAP funding backer or sponsor
- See below for Q&A fundamentals, or CAP frequently asked questions
PROJECT FINANCE FUNDAMENTALS & DEFINITIONS
Which industry sectors qualify for In3 funding?
Note: We can finance almost anything (so long as it doesn’t cause or perpetuate environmental or social harm), but we give preferential treatment to about 30 sectors, from “climate smart” agriculture to renewable energy, from resource recovery via waste-to-value to regenerative designs for smart cities, commercial real estate and much more (complete list of sectors).
What constitutes a “complete” Financial Model?
What is a financial “Completion Assurance Guarantee” (CAG)?
This article also explains how our use of guarantees is different than insurance, and also NOT a loan guarantee, because it is typically in place only until the project is built and commissioned, while loan guarantees protect the lender by remaining for the life of the loan.
What is a project “sponsor” or “backer” and why might a project owner/developer need one? Short answer: most developers have already put in all available cash to reach the current state of readiness. Involving another party as backer or “sponsor” does not use their cash to fund the project, but instead aligns both developer and sponsor on the goal of sustainable value creation.
“ADVANCED” PRACTITIONER SERIES – DEFINITIONS & IMPORTANT DETAILS
- PRACTITIONER SERIES: Financial Guarantees 101 — Definitions, Motivation and Decision-making support
- What is an RWA Letter?
- PRACTITIONER SERIES: Cash Deposits – In3 Capital Partners LLC
- Authorization to Verify (ATV) letter Template For Cash Deposits vs. Template for SbLCs/BG (ask us to know more about other options)
- Communicating with bankers about the guarantee
- What are the banking rules that govern “demand guarantees” and how do they protect developers and sponsors? Learn about the “Uniform Rules for Demand Guarantees” (URDG ICC pub no 758)
- Leverage/Coverage guidance for SbLC/BGs used to finance projects
- Protocol of complete CAP Steps and Timeframes “from Inception to Completion” (1-page PDF) for bankers. Explains how banking-savvy developers can pre-qualify for project financing.
FURTHER READING — SPECIAL TOPICS
- Background whitepaper (downloadable) with Q&A on Financial Guarantees, differences between Bank, Promissory Note and Sovereign Guarantees (4-page PDF)
- Financial Modeling User’s Guide (instructions for In3’s IFRS/GAAP template)
- What is Debt Finance?
- What is Equity Finance?
- Project Finance for International Development
VENTURE FINANCE
Top 3 Mistakes to Avoid when presenting to investors
In3 Group’s venture Fundraising & Advisory services
Inspiration: Vision & Innovation
TRADE FINANCE: If seeking Trade Finance
More at LEARNING CENTER FOR PROFESSIONAL DEVELOPMENT: In3capital.net/educational