PROJECT & TRADE FINANCE SERVICES
Empowering Trade with Strategic Financing Solutions
We offer financial advisory services to raise project capital for infrastructure and industrial projects. Our experience allows us to raise equity and debt financing on limited recourse basis.
The strength of our core disciplines is superior advisory services, which we apply in every deal, even before discussing financing options. We engage our world-class advisory and underwriting expertise to develop the optimal deal structure while providing enhanced due diligence and anti-money laundering advisory in addition to deal structuring.
With deal structure settled and in hand, we actively pursue the best financing options in capital markets worldwide. Whether providing trade financing, project financing or contract financing, when we combine deal structure, enhanced due diligence and analytical service, we deliver the best financing solution.
The global shortage of trade and project finance has made this phenomenon increasingly common, especially for small businesses. Our over two decades of underwriting experience coupled with powerful strategic partners position us to successfully finance deals where others have come up short. If you have been rejected by other lenders or financiers in the past, be rest assured we can assist to achieve funding.
Our advisory solution spread wide to the financial services sector, while we serve asset managers, private wealth managers, brokerage and trading firms, consulting and corporate firms, private equity and venture capital firms, hedge funds and consulting firms.
Our global network of reputable analysts and industry experts, supports several financial institutions and consulting companies to operate more efficiently and unlock their human capital, driving revenue higher and transforming operations.
Our managers and advisors maintain regular, open communication, ensuring timely decisions and the best advice. And when a project requires extra attention, we pool our resources and expertise to get the job done.
Our Guiding Principles
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Our Core Values
THAI EURO INVEST AG is a technical and financial consulting firm specializing in advising clients about how best to structure domestic and overseas projects for commercial bank debt, multilateral and bilateral institutional support, equity fund investment and credit enhancement. We have a special expertise in emerging markets worldwide.
We work directly with multilateral lending institutions and private equity funds, and provides financial diligence and economic consulting to the World Bank, the Overseas Private Investment Corporation (now the DFC) , the European Bank for Reconstruction and Development, Asia Development Bank, The United States Trade and Development Agency (USTDA) and other lending and investment institutions.
THAI EURO INVEST AG. brings years of experience in supporting investment banking teams on project finance engagements, we work with our sister companies and other partners on how best to structure domestic and overseas projects for commercial bank debt, multilateral and bilateral institutional support, equity fund investment and credit enhancement. Our financing partners work directly with lending institutions, export credit agencies, banks, private equity funds, insurance companies, law firms, and other non-bank lending organizations.
Our approach to financing advisories is unique. We start with financing due diligence and project economic analysis that is used by commercial banks, multilateral lenders and export credit agencies to qualify unique program requirements. We provide a unique combination of project development, financing expertise, relationships with key stakeholders, and proprietary tools and data that enable us to serve as trusted partners to governments, private developers, and investors.
THAI EURO INVEST AG financing consulting work focuses on helping bridge the current gap between infrastructure investment and needs by convening the right parties and collaborating to establish viable, bankable infrastructure projects in which investors can be confident.
Our project financing service consulting includes:
- Due Diligence: THAI EURO INVEST's financial due diligence involves thoroughly reviewing proposals involved in a transaction, including all warranties, bonds, and guarantees. Our due diligence in project finance is a process that consists of multiple steps to ensure the most comprehensive analysis, assessment of promoter history and background, evaluation of the company and project business model, legal due diligence, structure, determination of risks associated with the project, credit analysis and evaluation of loan terms, and project valuation.
- Sourcing investors: our roles as the project financing consultant are to help clients make their transaction bankable with a clear project-value proposition, and develop a roadmap to identify potential investors, lenders, manage the relationship, and develop the information or materials needed to support investor engagement and financing.
- Project Capital Ventures: In this model, we help our client’s source and match projects to financing, and build project-delivery consortium. This model is flexible and can include establishing partnership models. This exceptional approach does not only enable us to provide advisory services with delayed compensation or fees linked to project success – which relieves development-stage and cash-flow pressure.
- Structured Financing Solution: We help project owners identify the optimal strategy to raise financing for their project by drawing on our knowledge of the range of available tools and instruments, in-depth expertise on the assets under development, and insights into the project owner’s needs.
As an independent advisor, we assess all possible sources of financing which may be available to your projects when recommending a financing strategy - be it in the form of syndicated bank deals, capital markets solutions, or agency.
Trade Financing helps to reduce the risk associated with global trade by reconciling the divergent needs of an exporter and importer. Ideally, an exporter would prefer the importer to pay upfront for an export shipment to avoid the risk that the importer takes the shipment but refuses to pay for the goods. However, if the importer pays the exporter upfront, the exporter may accept the payment but refuse to ship the goods.
A common solution to this problem is for the importer’s bank to provide a letter of credit to the exporter's bank that provides for payment once the exporter presents documents that prove the shipment occurred, like a bill of lading. The letter of credit guarantees that once the issuing bank receives proof that the exporter shipped the goods and the terms of the agreement have been met, it will issue the payment to the exporter.
With the letter of credit, the buyer's bank assumes the responsibility of paying the seller. The buyer's bank would have to ensure the buyer was financially viable enough to honor the transaction. Trade finance helps both importers and exporters build trust in dealing with each other and thus facilitating trade.
Trade finance allows companies to increase their business and revenue through trade. For example, a U.S. company that can land a sale with another company overseas might not have the ability to produce the goods needed for the order.
However, through export financing or help from private or governmental trade finance agencies, the exporter can complete the order. As a result, the U.S. company gets new business that it might not have had without the creative financial solutions that trade finance provides.
Without trade financing, a company might fall behind on payments and lose a key customer or supplier that could have long-term ramifications for the company. Having options like Standby Letter of Credit, Bank Guarantee and other financial instruments can not only help companies transact internationally but also help them in times of financial difficulties.
These instruments can be classified as an independent payment undertaking, i.e. an undertaking issued by one party in support of another party’s obligations under an underlying agreement, where the issuing party’s obligations are independent of those of the supported party.
These instruments are typically required within a contractual framework with the objective of providing greater certainty and security as to a party’s fulfillment of its contractual obligations. In effect, a financial institution intervenes assuming the position of the party they are supporting, thereby replacing that party’s ability to perform with their own, providing increased comfort to the contractual party benefiting from the undertaking.
The most common requirements for the issuance of these instruments arise from the need to support bids on projects or contracts, to guarantee the performance of contractual obligations and to ensure the protection of advance payments made under an agreement. In Trade Finance terminology, the instruments issued by financial institutions to cover the aforementioned purposes are, respectively, bid, performance, financial and advance payment bonds. When structured either as demand guarantees or stand-by letters of credit, no shipping documents are needed and only a demand is presented.
It is important to note that trade finance focuses more on the trade than the underlying borrower, i.e. it is not balance sheet led. Therefore, small businesses with weaker balance sheets can use trade finance to trade significantly larger volumes of goods or services and work with stronger end customers.
Due to the embedded risk mitigants that surround trade finance lending and instruments, it leads to the potential of a diversity of supplier base for trading companies. A more diverse supplier network increases competition and efficiency in markets and supply chains.
However, funding trade is broader than simply financing export and import businesses. While we provide export financing for trade funding clients every day, we commit more to financing international trade than the simple offering of export finance. THAI EURO INVEST AG. clients benefit from worldwide financing research on emerging market finance and trade.
Bonds, Guarantees and Standby Letters of Credit
Bonds & guarantees, and standby letters of credit, provide companies with additional protection in respect of their business or customers, performance or financial obligations. We can issue guarantees on your behalf or receive and validate guarantees issued by other banks in your favour.
The terms of your contract will determine whether you need a guarantee or a standby letter of credit.
Trade Loans
We'll work closely with you to create a customised solution that fits your business, providing confidential financing that is kept separate to any other debt you may have.