Project Financing Parameters

All the financial resources and expertise required for a successful project financing are available from Travelers – innovative ideas, experienced specialists and access to capital. Our goal is to maximize the economic value of your energy asset by customizing our services to the unique requirements of your project.

We provide loan structures that rely on the cash flows from the underlying project to service the debt. This type of project financing is in most cases “off balance sheet” with term financing that does not rely on guarantees from the shareholders.

Below are general project financing parameters that define our approach to the renewable energy sector:

• Travelers typically provides construction financing, followed by fixed rate financing for the full amortization period
• Loan maturities up to the length of the Power Purchase Agreement (PPA with investment grade off-taker preferred)
• Debt sizing based on a debt service coverage ratio in the range of 1.30x to 1.60x depending on type of project (and P50 / P99 exceedance factors for wind and solar projects)
• Leverage up to maximum 80% (minimum 20% equity required by developer)
• Proven technology with appropriate warranties from qualified manufacturer
• Construction phase managed by a qualified contractor (EPC contractor preferred)
• Independent energy resource study required (hydrology / wind / solar irradiation / fibre supply)

Please visit the Traveler’s Finance Team page.