Construction Loan & Mezzanine Financing
The most common source of financing to ensure your project gets built. Competitive debt-based capital with flexible terms and fast turnaround.
Construction & Development Financing
Construction loans are the backbone of project development financing. Debt-based capital is supplied at competitive interest rates through our partnerships with leading banks and financial institutions.
Our construction loan facilities can finance up to 125% of equipment costs, with flexible payment deferrals of up to 3 years. This structure reduces the need for expensive bridge facilities and provides breathing room during construction and commissioning phases.
Key Features:
Finance beyond equipment costs to cover additional project expenses
Fast turnaround to keep your project on schedule
Defer first payment up to 3 years to improve cash flow
Types of Construction Financing
Multiple debt structures to match your project's specific needs
Senior Construction Loan
Traditional construction financing covering the majority of project costs with first lien security. Typically 60-75% of total project cost.
- Lower interest rates due to senior position
- First claim on project assets and cash flows
- Long-term relationship with institutional lenders
Mezzanine Financing
Subordinated debt filling the gap between senior debt and equity. Higher returns for lenders, more flexible terms for borrowers.
- Fills financing gap without diluting equity
- May include equity participation features
- More flexible covenants than senior debt
Term Loan Conversion
Construction loans that automatically convert to long-term financing upon project completion, simplifying the financing process.
- Seamless transition from construction to operations
- Reduced refinancing risk and costs
- Single lender relationship throughout project life
Equipment Financing
Specialized financing secured by specific equipment, offering up to 125% of equipment value to cover installation and integration costs.
- Higher advance rates on equipment value
- Covers soft costs and working capital
- Specialized lenders with technical expertise
Why Choose Construction Loans?
Competitive Rates
Lower interest rates than equity, preserving more upside for project owners
Fast Approval
3-5 month typical timeframe with conditional approval letters available
Payment Flexibility
Up to 3 years payment deferral improves project cash flow during ramp-up
High Advance Rates
Up to 125% of equipment costs, reducing equity requirements
No Dilution
Debt doesn't dilute ownership, you maintain full control of your project
Tax Benefits
Interest payments are tax-deductible, reducing effective cost of capital
Typical Requirements
What lenders typically look for in construction loan applications
Project Documentation
- Detailed project feasibility study
- Engineering, procurement, and construction (EPC) contracts
- Environmental and permitting approvals
- Construction timeline and milestone schedule
Financial Requirements
- Comprehensive financial projections (10-20 years)
- Debt service coverage ratio analysis
- Sources and uses of funds statement
- Equity contribution commitment (typically 20-30%)
Commercial Agreements
- Power purchase agreements (PPAs) or off-take contracts
- Operation and maintenance agreements
- Equipment supply and warranty agreements
- Grid connection and transmission agreements
Team & Experience
- Experienced project development team
- Proven EPC contractor with relevant experience
- Independent technical and financial advisors
- Insurance and risk mitigation strategy