Services value
RPFB specializes in raising long-term financings for the companies and the investment projects. RPFB also provides consulting services on entering international debt markets, mergers and acquisitions, structuring of joint ventures, developing financial and economic models, preparing business plans and loan applications.
As financial advisors, we ensure effective communication between local companies and foreign investors, as well as between borrowers and financial institutions, based on knowledge of their lending criteria and project preparation requirements.
We are focusing on making things happened, the main part of our remuneration is the success fee, paid after the disbursement of the financing.
Traditionally RPFB has specialized in multi-source financing, ensuring the access to all liquidity pools, competition of the sources of funds, and thereby the achievement of the best terms of the loans (see section Financing Sources). In the context of sanction restrictions imposed on the international financing for Russian projects, RPFB is expanding its business in Kazakhstan, Uzbekistan and other CIS countries. For Russian clients we provide assistance in attracting financing from Russian banks and development institutions, obtaining various forms of state support for the investment process.
Our advantages are:
The key business area of RPFB is consulting in the field of project finance: our team is focusing on this product and on the interests of the client
- RPFB has acquired extensive and successful experience in implementing projects with participation of Export Credit Agencies, Russian and foreign commercial banks, international financial institutions and VEB.RF
- We possess unique experience in organizing a multi-source co-financing of investment projects, and structuring of partners relationships
- RPFB does not participate in lending, which allows to avoid conflict of interests and enables to support client’s interests at all stages of the deal
- We are flexible and prepared to operate as a sole advisor or in consortium with Russian and international banks
- We are professionals: RPFB team members have first-hand personal experience in execution of landmark transactions
We are always focused on the final result for the client – this is, first of all, an acceptable level of risk, best terms debt financing (amount, maturity, pricing) and the acceleration of deal preparation.
Our Approach:
- Access to all liquidity pools and facilitation of competition among lenders;
- Innovative approaches in financial modeling and a comprehensive analysis that allows the borrower to assess economic consequences of available financial options;
- Understanding of the criteria and requirements of lending institutions – development of a structure / risk matrix meeting these criteria, high-quality and prompt preparation of information materials according to the lenders’ standards;
- Efficient negotiations in the interests of the borrower and developing arguments based on the precedents;
- Attraction of bridge financing, if possible, to accelerate the implementation of the project and relieve the time pressure in the negotiation process.
We invite you to visit «Case Studies» section of our website to get acquainted with the RPFB experience in completed landmark transactions.
Project Finance
In the last years, Russian companies have been successfully using project finance («PF») technology to implement capital-intensive investment projects.
The advantages of PF are:
- Rational use of own funds, conserving own equity and using it for projects that are not project-financeable
- Increase of free cash flow available to shareholders for operational activities on corporate level
- Positive influence on financial metrics as PF debt is not consolidated on Sponsor’s balance sheet and does not impact Net Debt/EBITDA
- Limited recourse on Sponsor’s business: Sponsor’s liability is limited by equity invested into the project
- Improvement of the project quality due to Lenders’ due diligence
- Sharing of project risks with partners, lenders and other project participants
- Improved economic feasibility due to financial leverage
PF may be the best solution to finance investment projects for the companies which are interested in limiting the impact of debt on the balance sheet. Using PF allows significantly expand the investment capabilityies – it becomes possible to simultaneously implement several capital-intensive projects.
RPFB helps its clients to decide if PF is appropriate for particular project.
RPFB provides its clients turn-key advisory services for raising multi-source PF, including:
- Selection and attraction of partners, structuring of partnerships;
- Economical assessment of a project, development of the financial model and preparation of the feasibility study;
- Development of the contractual structure, risk analysis and elaboration of risk mitigation measures, development of the Term Sheet;
- Arrangement of due diligence, including engagement and management of the lenders consultants;
- Preparation of the information memorandum;
- Development of the financial plan, syndication strategy, entering the market, obtaining commitments from banks;
- Running efficient negotiations, and of loan documentation approval process;
- Obtaining all necessary authorizing documents and fulfilling the condition precedents for the entering into force of the loan agreements.
RPFB coordinates the work with all parties involved into the project: sponsors, lenders, technical and legal consultants, state authorities. While each of the parties has its own incentives/priorities in the implementation of the project, RPFB acts as a coordinator, ensuring timely decision-making and maintaining a balance of interests of all participants.
Corporate Finance
RPFB assists clients in entering international financial markets, establishing themselves in these markets as reliable borrowers, as well as in effectively managing their loan portfolios.
RPFB helps to assess the creditworthiness and determine the financial needs of the borrower, jointly with the company develops and implements a financial strategy that meets its interests.
We work with almost all sources of debt financing, available to Russian borrowers, including international and Russian commercial banks, Export Credit Agencies («ECAs»), international financial institutions («IFIs»), capital markets, development institutions (e.g. VEB.RF ) etc. Our task is to determine the most suitable financial instrument for the client, depending on the specific needs of the borrower and financial markets conditions. We aim to ensure competition of sources, to achieve the best pricing terms, to agree on covenants that impose acceptable obligations on the borrower and the least possible restrictions of the corporate behavior. Usually, we work with a client not only on one specific transaction but over a long period of time, helping to build a credit policy and relations with creditors, elaborate loan documentation standards, shape a long-term loan portfolio, ensuring even debt service profile and maintaining healthy liquidity.
RPFB has extensive experience in optimizing the loan portfolio, reducing the burden of debt service, debt restructuring. A number of transactions initiated and executed by the RPFB, e.g. the refinancing of Blue Stream export loans through bonds issue, brought a significant economic value to the client.
Our services are especially in demand during periods of unfavorable market conditions and liquidity crises. We help to conduct negotiations with creditors on debt refinancing and restructuring, agree on realistic covenants (e.g. financial ratios), attract the necessary external funds to maintain liquidity. RPFB has the understanding and experience in developing security packages and guarantees for lenders that can significantly improve terms of debt: extend tenors and reduce pricing compared to unsecured loans (which terms are strictly linked to the borrower’s rating).
When implementing financial transactions, we are able to take on as much responsibility as the client is ready to delegate to us. RPFB helps to choose the best financial instrument, make a financial and economic assessment of the transaction, conduct a tender among funding banks, develop the Term Sheet, make a comparative analysis of the offers and negotiate the pricing terms, organize necessary legal and technical due diligence and agree the loan documentation.
Development of financial models
RPFB provides services for developing of financial models for all stages of investment project implementation – from financial model “for Initiator/Sponsor” (a model that is developed at pre-investment stage to test economics of business idea, as a part of feasibility study or as an instrument for preparation of investment decision. It can also be used as instrument for negotiation with potential co-investors) to “banking quality” financial model which is used to interact with potential lenders.
Requirements and features of financial models vary on different stages (for more detailed information on financial models features for different project stages see section “Financial modelling for projects on different implementation stages”).
In the process of preparation of the financial model RPFB uses its own tools and know-how, which allows to reduce the time of development of the first version of the financial model («for Sponsor», «analytical», or «banking quality»). If we are engaged as model developers at the pre-investment stage, we ensure that the model’s structure allows quick conversion from one version of the model to another. This approach allows to save time on the financial model development and speed up the process of raising debt for the project.
We provide assistance to our clients on development of financial model «from scratch» on the basis of technical / engineering information of the client or existing financial model of the project (please find more information on financial model development in the article «Financial modeling: principles of development»).
RPFB specialists can also assist in the preparation of feasibility study / business plan / presentation materials for your project.
On client’s request RPFB can also develop guide for regular updates and provide training to client’s employees on financial model update process. Alternatively, if the model requires regular expansion of its functions, we also provide services to maintain financial model at operational phase of the project.
Mergers & Acquisitions and others
RPFB provides M&A services both on the seller’s side (list of potential buyers & pre-sale asset preparation, evaluation, development of marketing materials – teaser, information memorandum), and on the buyer’s side (search for acquisition targets based on industry expertise, valuation of target companies, identification of potential synergies, preliminary contacts with owners). RPFB provides comprehensive support at all stages of the process, including development of the financial model, structuring of the transaction, preparation of the non-binding proposal and negotiations, coordination of due diligence and negotiation of legal documentation.
RPFB also assists in raising financing for MBO (Management buyout) and LBO (Leveraged buyout) transactions, including analysis of business structure and its credit capacity, selection of the source of financing, development of loan parameters, preparation of information materials for potential lenders, negotiation of credit documentation and execution of conditions precedent.
RPFB also advises clients on the development of financial strategy, refinancing/debt restructuring, raising equity capital from international and Russian investors (private placement), organization of Initial Public Offering (IPO), ADR placement.
RPFB has a successful experience of advisory on compliance of business with requirements of international investors, enhancement of financial transparency and adoption to advanced corporate governance principles.