Tailored Project Financing and Fund-raising Ability 

Tailor-made solutions for financial planning & investing

Project financing is a loan structure on the project’s cash flow for repayment. The project’s assets, rights, and interests would be held as secondary collateral.

Our key project financing differentiators are that we offer a truly unique process, we focus on understanding particular government to government projects, we specialise in serving governments, our staff share distinctive characteristics and skills, we focus on solving specific project challenges, we offer a unique set of contacts and relationships not easily accessible, we do business with a distinctive level of service and we specialise in a unique and very valuable result.

To make it simple, Heritage Funds LPF always uses funding model of Barter Trade for Project (BTP) successfully for the project owners / employers / holders, when the loan model between two governments could not be applied.

Finding a great and viable government-to-government project, it is just the start of the journey. We recognise that every project is different. It faces its own unique set of opportunities and challenges – commercial, financial, operational, legal, risk, regulatory, or tax, both now and in the future, Heritage Funds LPF applies itself a variety of lenses and know-how tools to create a bankable solution.

Although the fundraising is one of the hardest and most stressful stages for the project owners / employers / holders, to tackle this most important challenge and capture the greatest opportunities, their strategies for project financing are developed alongside with Heritage Funds LPF. We provide them with access to our three internal resources, namely (1) China money turning into action, (2) project know-how implementation solution, and (3) a very brilliant brain.

Heritage Funds LPF combines its global best practices with deep China knowledge to offer with the integrated, market-based and capital market solutions for the project financing. We have agility in problem solving ability. It applies to our governmental projects for EPC Chinese partners to carry out the construction together with the project owners / employers / holders.

Heritage Funds LPF has forged privileged relationships with several pools of significant capital from China and within Asia. Together with China investors, our capital partnerships are established based on the principles of trust and mutual respect.

We understand that our project partners come from various backgrounds and with different needs. As per request by our project partners, it can be differentiated in their project size, its financial instrument duration, payment structure with Chinese financial institutions.

Ultimately, we always maintain working on our project owners / employers / holders’ focused vision. Heritage Funds LPF provides a best-in-class solution with a turnkey total solution for them.

Our reputation and the trust built in all our relationships, it is our most valuable assets, and it is the cornerstone of success with Heritage group.

CHINESE STRATEGIC PARTNERSHIP

Heritage group has directly or indirectly entered into mutually beneficial strategic partnerships with various subsidiaries of Chinese policy banks, Chinese sovereign funds, Chinese state-owned companies, and Chinese investors. We are involved with them in the cooperation for the government-to-government projects.

By partnering with different types of our Chinese strategic partners, we have established an unparalleled network of relationships with China capital.

These partnerships have significantly enabled Heritage Funds LPF to act as a project financing, fund-raising, investment, and project management platform for channelling Chinese money into our portfolio of the government-to-government projects.

BEST MATCH AND FIT

Heritage group strives to meet the financing needs in different phases of completion of our projects whilst having local teams to provide us with in-depth knowledge of local market features. It enables Heritage group to meet the project owners / employers / holders’ specific requirements with unique conditions to deliver.

We understand that every government-to-government project brings its own unique set of characteristics, and therefore we believe that our solutions should likewise be unique.

Given the stringent requirements and exceptional demands of our Chinese partners, and our project owners / employers / holders, each solution is highly customized and no two projects are the same.

From experienced by Heritage group, we know that when all the pieces of the value chain for our Chinese strategic partners on government-to-government projects are in place, the project’s risks are mitigated and financing can be secured in various ways.

Funding and financing options

By working with Chinese governmental authorities, Chinese policy banks, Sinosure, Chinese state-owned companies, Heritage group can use a flexible approach toward funding co-operative programs i.e., such as a strong experience in structuring funding via different options.

It has been characterised by the jointly capital commitment by Heritage Funds LPF and its Chinese partners. That leads to its implementation with strong project execution capability by applying the full following spectrum of project financing instruments:

• RMB project financing
• Fund of funds conversion into the project investments
• By using the credit line under the China financing platform and project & trade finance
• Export buyer’s / seller’s credit (remark: to be explained in details in the next page)
• Concessional loan and preferential export buyer’s credit
• Financial leasing
• Equity/debt funding
• Bond raise in the financial market, etc.
• EPC+F (finance) with the governmental guarantee
• Panda bond, public bonds & sovereign bonds
• Open-ended fund
• International PE with the jointly capital commitment by Heritage Funds LPF

Heritage group works in concert with the request to pay RMB to Chinese state-owned companies for our government-to-government projects. It is a convenient exercise during the high velocity period of RMB internationalization.

Via our core segment and strength with China capital, Heritage group has accessed and leveraged its vast, solid, and excellent relationship with the Chinese state-owned companies to develop a strategy as strategic equity investment partners (using the “EPC+F” model).

This involves the project equity with significant capital commitment, which is placed by Heritage Funds LPF whilst the project debt for the project owners / employers / holders, is granted by Chinese banks such as China Development Bank, Exim Bank and ICBC.

Such project debt typically represents 85% of the project construction costs in additional to the combination remaining 15% bridging finance offered by Heritage Funds LPF. This model has enabled Chinese state-owned companies to develop its project implementation outside of China.