Showing posts with label energy project finance. Show all posts
Showing posts with label energy project finance. Show all posts

Saturday, March 30, 2019

Financing Renewable Energy Projects

The world over, investors are always on the lookout for profitable avenues for investing which can give substantial returns within a reasonable period by taking acceptable amounts of risk. People would always need roads, bridges, transport or even housing, which is why infrastructure fundraising is one of the most popular avenues for raising capital.

Oil – A Story that will end someday

But we know that the one thing that still makes the world go round is oil. We live in a world which is unthinkable without oil. That is why so many companies are in the oil and gas sector, and we regularly see action in the oil mergers and acquisitions space. But this is a fairytale which will end sometime in the future. That end might still be several years away, but the movers and shakers of the world have already begun thinking about what can be done when that day finally arrives.

Renewable Energy – A Credible Alternative

One of the sustainable solutions for the time when we will finally run out of oil is to shift completely to renewable energy sources. There are several renewable energy sources that Mother Nature herself has provided us, like the sun, wind, tides, falling water etc. If we are able to harness these sources well, then we can completely do away for the need for oil, and therefore for oil & gas m&a as well. But then, the agencies or companies that go into renewable energy would need to have adequate funding as well. For an investor, what could be the advantages of financing renewable energy projects?

Why renewable energy finance?

The biggest benefit a company gets if it provides funding for renewable energy project is that this is the future of our world, so they needn’t worry about the sector dying away someday. We are hurtling at breakneck speed towards a world which will have no oil, so all of us will necessarily have to depend on renewable energy. Second, renewable energy is a very sustainable alternative. Unlike the huge mining operations for oil and gas, the harnessing of renewable energy sources does not play havoc with the fragile ecological balance of our world.

Finally, the chances of the investment in renewable energy going bust are negligible, so even financially, it makes good sense. Because of these reasons, several companies have been taking the help of companies like Kapok Capital to deploy financial resources into renewable energy companies.

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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

Renewable sources of energy are the ones that do not exhaust or have the ability to renew themselves. They are the gifts of nature and have ...