Working with us you’ll benefit from our significant experience in infrastructure and energy markets built from over 25 years of advising on projects globally. We have worked on projects throughout Europe (UK, Ireland, Continental Europe and Eastern Europe), the Americas (USA, Canada, Mexico, and South America), Australia and New Zealand from offices in the UK, US and Canada. Our clients include government authorities, developers, infrastructure funds and institutional investors, who value our tailored approach and innovative solutions to managing large and long dated financial risk exposures.
Knowing that the financial transaction cost of project hedging is important to you, we work with clients to reduce the financial cost and to suggest alternative heading strategies where possible, creating more flexibility and transparency. We negotiate with our global network of financial institutions to minimize spreads and margins payable on the execution of derivatives and to deliver a bespoke service throughout the hedging process and beyond completion. With our teams’ specialist market knowledge and daily exposure to financial markets, you receive up-to-the-minute pricing, prevailing commercial terms and an understanding of the true cost of your projects. We establish strong ongoing relationships and become a valuable partner to our clients in this sector, providing clear advice and innovative solutions that match your requirements
We have over 20 years' of experience in this sector and are now the largest capital markets advisor to PPP globally, and in every market we operate in. We work for a wide range of quasi-government and direct government clients, providing independent advice and innovative solutions to managing financial exposure. Our team of experts are committed to providing you with unmistakeable value by negotiating with banks, acting as a capital markets advisor on bond issues, minimising spreads and margins payable on the execution of derivative based structures, and delivering an individual service throughout the transaction, including after completion.
JCRA works closely with infrastructure funds to structure and implement hedge solutions that reflect their specific risk criteria. We typically work with investors looking at hard infrastructure, renewable energy projects and infrastructure providers. Much of the interest rate risk that these funds face will involve pre-hedging or a need to be structured in a contingent way so the fund has as much flexibility and certainty as possible. These transactions also often involve a significant amount of debt, sometimes with multi-currency incomes, which we fully understand before tailoring a hedge solution. In addition to assisting with foreign exchange risk management at the investment level, we also provide a significant amount of advice at the fund level to ensure that any hedge they enter into is as effective at meeting your goals as possible. We also offer documentation advice and ongoing support and assistance with valuations and regulatory reporting.
Project Finance Companies
The project finance sector is diverse; ranging from infrastructure development companies to energy based companies including renewable energy (onshore and offshore wind, solar, biomass and waste), natural gas, LNG, pipelines and transmission. You can count on our team of financial markets experts to manage the interest rate, currency, inflation and commodity risks, create hedging strategies that address both short term and long term needs and deliver solutions to address unique hedge requirements.
We provide a range of hedging strategies and derivative solutions designed to reduce volatility and protect your profitability.
Often mandatory, but with the right advice you can make it work in your favourread more
Management of a transaction’s interest rate exposure is often a condition of sanction from providing banks who directly benefit from providing ancillary services. We evaluate your interest rate risk and create a hedging strategy that satisfies any particular lending requirement and meets your business objectives. Unlike the bank, our strategy advice is impartial. As an independent firm, we have no other motive than to deliver a strategy that is best aligned to your business goals.
Mitigate losses and risk associated with currency fluctuationsread more
Importers, exporters and investors with overseas assets are all exposed to foreign exchange risk. Failure to analyse risk and implement a bespoke hedging strategy can lead to significant losses.
We evaluate your business’s FX exposure: transactional and translational; short, medium or long term. Some FX exposures are easily identifiable, while others are less obvious. Optimal FX management involves the ability to work within credit constraints and around the inevitable fallibility of forecasts, while also considering natural hedges.
Your commodity exposure is connected to your commercial arrangements. We understand thatread more
We structure hedge solutions that match your objectives. We understand the interaction between your commodity exposure and other commercial arrangements such as debt covenants. Our pricing capabilities provide complete transparency on pricing, and our experience and contacts within this specialised area mean we can source the best hedge counterparties.
How do you mitigate exposure to index-linked income/expenditure? We assist with this, and moreread more
Inflation risk can arise within a business either explicitly, through a contractual arrangement, or implicitly, through cost or revenue base. It is important when assessing inflation hedging requirements to identify any natural offsetting hedge already present in your business. We can advise you on how to mitigate exposure to index-linked income/expenditure. We offer you our expertise to assess the risk, ensure that the appropriate hedging structure has been chosen and negotiate fair and transparent pricing with the hedge provider.
We support your accounting teams to effectively manage your derivativesread more
Whether your accounting team requires support or additional expertise with hedge accounting under IFRS, USGAAP and new UKGAAP, or derivatives valuations for internal management or financial reporting, we tailor our services to meet your needs. Our service can ensure accuracy of the reporting of your derivative instruments. Through the full life cycle of hedge accounting, or just one part of the process, we can help ease the workload on your accounting team. We provide guidance on whether to apply hedge accounting, help you meet documentation and effectiveness assessment requirements, and deliver the analysis needed for the relevant disclosures. If you need to convert into IFRS, US GAAP - or into the new UK accounting standard, FRS 101/102 - we can complete a comprehensive analysis of the impacts and considerations and support you with your conversion project. With valuations, we understand that the introduction of CVA/DVA adjustments has deepened the complexity of traditional counterparty bank valuations. We use sophisticated technology and processes to deliver bespoke derivatives valuations.
How do you manage surplus cash? Our independent advice ensures a strategy that’s best for youread more
The risks inherent in managing surplus cash are counterparty credit risk, concentration risk and liquidity risk. We work with you to establish the intentions for the cash holdings and consider the relative importance of security, liquidity and yield, as well as factors such as risk versus return and complete capital preservation. We advise on a wide range of short-term investment opportunities, including bank treasury deposits, call accounts and money market funds, designing and documenting bespoke cash management policies and strategies. Our independence means we refuse any introductory commissions from cash product providers, instead requesting that they divert this payment to you in the form of an improved rate of return.
Unbiased and expert opinion in hedging disputes based on forensic analysis and cross-sector experienceread more
If you have a hedging dispute related to hedge mis-selling, our experience and independence means we are well placed to help with the resolution of your case. We look at the core objectives of the borrower, review all correspondence and documentation pertaining to the hedge and the pricing, as well as any alternatives which may have been offered. Our systems recreate historical markets in which the instrument was traded to provide context and determine whether the hedge was suitable and appropriate at the time. A hypothetical hedging strategy and our opinion on what would have been the most suitable course of action are formulated. This is used to benchmark the hedge under dispute and provide guidance on an acceptable level of redress.
You may need an expert witness, if you have initiated a legal claim and require independent input as part of the litigation process. We can assist under instruction from legal counsel on the case. Our service encompasses the aspects described above and delivers an in-depth appraisal of the communication between defendant and claimant pre, during and post hedge execution. In the UK, all reports comply with requirements set out in Practice Direction 35.
We constantly monitor the regulatory environment and analyse how changes will impact your business.read more
We constantly monitor the regulatory environment and analyse how changes will impact your business. No matter how complex your organisation’s structure, we can ensure you meet AIFMD, EMIR and Dodd-Frank requirements. In a rapidly changing regulatory environment where your investors and regulators need reassurance that you are up-to-date with regulation, you can trust that our advice is clear, independent and correct.
Christian de Chenu
Have you got a question about how you hedge your financial risks, or structure and arrange your debt?
Find out how we can help you by contacting us today.