Project Finance and Long-term investment loan for Chemical Plant Projects

Chemical Industry remains the is one of the fastest-growing of all industries in the world. This growth is expected to continue post-COVID also. To fuel such growth, companies access funds via various routes. The chemical industry plays a key role in integrating value chains and makes an important contribution to the global economy. Havelet Finance Limited provides project finance for chemical plants project, including the issuance of large long-term investment loans of more than 500 million euros.

Havelet Finance Limited offers the following;:

• Large loans and project finance for chemical plants.
• Refinancing of debts of chemical industry enterprises.
• Services in the field of financial engineering and financial modeling.
• Legal, technical and financial consulting.

Contact us to learn more about our technological excellence and broad financial opportunities.

Cost of Investment for construction of chemical plants

The investment cost for the construction of small chemical plants can be in the tens of millions of US dollars, but facilities of this scale are being built less frequently and are mostly limited to regional projects. The current trend is to gradually expand factories and move to large and expensive projects in order to economize on scale and further improve competitiveness.

An example of such a mega-project is the Sadara Integrated Chemicals Complex in Saudi Arabia, which was jointly created by several large companies. The estimated construction cost of the plant reaches US$ 20 billion, making it one of the largest chemical plants on the planet.

Sources of financing for the chemical plant project

The right choice of funding sources is a key condition for ensuring the efficiency and competitiveness of any chemical production. In most cases, the combination of equity and debt capital is used to quickly attract the required resources. The choice of the ratio of capital, methods of attracting it and specific financial models is subordinated to the company’s strategy, taking into account the following factors.

When choosing sources of financing for the construction of chemical plants, it is important to take into account the construction schedule, which should coincide with the cash flow schedule.

The major sources of financing a chemical plant projects includes Internal and external financing.

Internal sources of project finance for Chemical Plants

The best source of financing for chemical plants is internal financing, which consists of the company’s net profit, depreciation, as well as various instruments for transforming assets into financial reserves. Internal financing can increase liquidity, which strengthens the company’s competitive position in the financial market. This has a positive effect on current activities and contributes to faster development and expansion of the business.

External sources of project finance for Chemical Plants

The use of external sources of financing for projects of chemical plants helps the business to use unique development opportunities and at the same time solve the problems associated with financial liquidity. Within the framework of external financing, there are many instruments such as equipment leasing and bank loans. Within the framework of external financing, there are many instruments such as equipment leasing and bank loans.

This is an attractive form of financing due to the repayment of obligations with a delay in relation to the future financial flows that the investment project should generate. Given the high investment costs in the industry, the development and expansion of chemical companies depends on access to external sources of finance.

Loans for Large investment projects

A large investment loan is a type of medium and long-term targeted financing that companies receive through banks and other financial institutions.

A bank loan is one of the most widely used methods of financing chemical companies. Funding for the chemical industry comes from many financial institutions, including the International Finance Corporation and the World Bank.

Currently, commercial banks provide most of the financial services to chemical companies. Since the company applies for significant financial resources (loan amounts are often hundreds of millions of dollars), the choice of a specific proposal deserves close attention and analysis.

We support the financing of large projects in the field of oil production and refining, develop advanced financial models for our clients and offer professional advisory services.

We are also currently structuring a convertible debt and loan financing and other project financing and international loans at of 2% interest repayable annually with no early prepayment penalties.

Website: https://www.havelet-finance.com
Email: credit@havelet-finance.com