The implementation of infrastructure projects allows to spice up and in some cases to restore the production of the enterprise and industry. The financing of infrastructure projects is possible for the purpose of modernization, expansion of existing facilities or for the construction of new property complexes.
Infrastructure projects are unique projects that are simultaneously characterized by high social and state significance, as well as by high profitability. Infrastructure projects are complex ones, they involve a large number of participants.
Generally, all infrastructure projects can be divided into two types:
Municipal projects implemented for the creation/rehabilitation of infrastructure, which is in municipal ownership (construction of local roads, utility networks and other public facilities);
Private projects involving financial institutions, the implementation of which is focused on the creation of additional jobs, increase of production capacities or creation of new objects, as well as at the state budget taxes receipt (modernization of agro-industrial complexes, construction of modernized and re-equipped terminals, etc.)
Increasing investment in infrastructure projects boosts the volume of production in the short term, stimulates demand, and in the long term, increases the production capacity of the enterprise. Infrastructure projects are capital-intensive and long-term.
When considering infrastructure projects, TEKOM-Lease take into account the synergy effects that they will bring to the economy of the enterprise and the industry in general.
Main Aspects of Financing the Projects of JSB PIVDENNY, PJSC and TEKOM-Lease, LLC
TARGET: financing the projects of development and technical re-equipment of Ukrainian enterprises.
SPECIALISATION: financial leasing of complex technical systems including the development of project documentation, creation of technical objects, their installation and commissioning.
EXPERIENCE: financing of agro-industrial complexes, construction of new grain terminals , equipment of port with high-tech special equipment including the same in the territory of seaport, etc.
Promising directions of activities: upgrading of of the shipbuilding industry technical facilities, agricultural integrated enterprises, agricultural holdings, elevator complexes, loading and unloading terminals, medical institutions, large heating systems, etc.
The use of the financial leasing mechanism is the most advantageous and reliable to upgrade or create infrastructure. Leasing provides a number of possibilities that significantly reduce the risks of the project.Advantages of financial leasing:
- The possibility of long- and medium-term financing under attractive conditions.
- Beneficial leasing terms: attractive effective interest rate, optimal size of the advance payment, individual schedule of lease payments, preferential insurance of leased assets depending on the project complexity, etc.
- The object of lease may not be arrested, confiscated or taken over the debts as along as it is owned by a leasing company.
- Compulsory insurance of the leased asset covers the risks of damage and destruction.
- Stability and anticyclical source of funding.
- Transparency, legitimacy and legal support of financing schemes;
- The leasing company becomes a trusted partner protecting the interests of all project participants.
The leasing company provides for
Assessment of the enterprise’s financial capabilities, economy and project risks;
Controlled selection of the vendor of the leasing object and general contractor, and supervised performance of the whole set of works on creation of a technical object;
Insurance of the project key risks on preferential terms;
Monitoring of the implementation of the project, and organization of risk management; and
Protection of the interests of the project participants from encroachments of third parties, etc.
In view of the stated above, TEKOM-Lease, LLC, together with JSB PIVDENNY, PJSC, offers technical upgrading of assets at the expense of attracted investments with the use of the financial leasing mechanism. The project includes the “turnkey” creation of the new object or modernization of existing technical one and its transfer to the enterprise’s financial leasing as the subject of the latter.
- The cost of the project is up to USD 5 million;
- Funding currency – the Ukrainian hryvnia, USD or Euro;
- Term of financing – up to 5 years;
- Borrowed funds are provided jointly by the Bank and Leasing Company;
- Collateral – the Centre of Mortgage Lending and the object of lease after the delivery and commissioning;
The project financing structure:
- modernization of the existing complex: 30% - owned funds / 70% - borrowed funds;
- building of a new complex: 50% - owned funds / 50% - borrowed funds;