Tuesday, December 4, 2018

Kapok Capital Will Help In Fundraising For Oil Energy Projects

When a corporation is looking for energy project finance, it needs substantial amounts, which would be given for substantial periods of time. This is because it involves long stages of exploration, testing, and setting up of required infrastructure. There are chances that the long efforts and investment might not bear fruit at all. That would make all the energy efficiency financing go to waste. Also, the financial statements of such companies might not fit into the requirements of the traditional banks.


That is why other renewable energy funding sources must be explored. Kapok Capital is one such source. They have been successfully doing fundraising for a number of companies for more than a decade. They helped Kerogen Capital to make a $50 million equity investment in Energean Israel. TNO Mining used the services of Kapok’s equity fundraising for its granite mining operations in Brazil. Apart from these equity fundraising efforts, Kapok has also arranged for infrastructure equity funds for companies like Kosmos Energy ($300 million), Tullow Oil plc ($650 million revolving credit, and $300 million bridge facility), Seven Energy ($150 million), Nigeria LNG ($75 million bridge facility) and many more.

Fundraising is not the only activity in which Kapok Capital has expertise. They are experienced in a number of mergers and acquisitions. This is of special interest for energy companies, and also for companies involved in research for renewable energy sources. This is because this sector sees a number of bigger companies taking over or acquiring smaller companies. Sometimes companies decide to merge with companies bigger than themselves. This could be because the two companies have complementary strengths which can become even stronger after the companies merge. Additionally, it allows both companies to pool in their financial or human capital resources.


Companies going in for a merger or an acquisition can use the advisory services of Kapok Capital. They will carry out due diligence on the target company, and provide advice regarding the structure of the transaction. If the client is preparing to make a bid for takeover, Kapok would devise the best bid strategy and also prepare the complete bid package. Additionally, Kapok specializes in disposal services. Some of the mergers and acquisitions handled by Kapok Capital are Amni International’s acquisition of 50% stake in Okoro oilfields, disposal of Marathon’s 20% stake in Block 32 etc.

In addition to the above, Kapok provides risk advisory services for corporates, along with a number of other consulting services.

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Use Of Renewable Sources Of Energy

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