Project Financing and Fund-raising Ability
We provide the project financing to help our best-in-breed partners / project owners / employers / project holders scale up their ambition and challenges at every stage of our government-to-government projects.
We help them get prepared to go for project financing supported by our ability to structure a wide range of complex financing projects.
This will ensure that they are well-placed to carry out and materialize their project implementation.
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.
How we work with our Chinese partners
Working in collaboration with its Chinese partners, Heritage group brings and offers a unified leadership and comprehensive range of financing services catering to the unique conditions of the government-to-government projects.
Heritage Funds LPF provides not only a diversified range of project financing services and solutions, but also making the direct investments into our government-to-government projects together with Chinese co-investors.
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.
Chinese and International fund of fund conversion into the project investments
Also, by co-operating with international funds and Chinese funds, Heritage Funds LPF as the general partner (GP) and one of the Limited Partners (LP), has established a pool of PE funds after obtaining funds from its Limited Partners (LP) of China and international PE funds.
It legally leads to be holding a pool of fund of funds deposited in Singapore from its international investors and Chinese investors. The pool of fund of funds is based in Singapore as Singapore’s status as a global finance and fintech centre. The objective is to be mandated for cooperation with the international funds and Chinese funds to invest into ASEAN infrastructure projects, and the projects in the UAE.
It is an important achievement for Heritage Funds LPF to be rapidly expanding further portfolio of government-to-government projects. It is an endorsement of our capacity and capability to deliver an “A-Z” integral turnkey solution for the project owners / employers / holders, Chinese state-owned EPC companies and our investors.
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.
In line with China reviving the Silk Road route and its “The Belt and Road Initiative”, This overseas investment drives with vast pools of capital, which has been deployed to this initiative by China. Heritage group always makes full efforts and participates with Chinese state-owned corporations into our government-to-government projects.
Such experience puts Heritage Funds LPF to bridge the co-operation, creates and connects unique and unprecedented opportunities to value between Chinese state-owned companies and project owners / employers / holders.