Our role in the process was to advise on and structure a suitable pre-hedging strategy for this project three months before financial close (FC).
The sponsors wished to de-risk the project prior to reaching FC by forward hedging the floating rate of LIBOR for the required commercial bank debt together with the EUR/GDP capex risk required during the construction phase.
Financing was provided by a consortium of international banks via a floating rate commercial bank syndicate.
FX hedging was required at FC to cover capex construction & equipment costs.
T: +44 (0)207 493 3310
Deal contingent hedges (DCH) were agreed to be the preferred strategy.
Introduce non lending banks to compete for the deal contingent trades.
Run competition process to ensure best value from the potential DCH providers.
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.