Project finance

SN Power´s core principle is that all investments are made on a limited- / non- recourse basis. All operating companies have their own separate financing structure where the security for the debt service lies in the cash flow of the individual companies.

Centralised competence

SN Power has built up its competence within the field of project finance and this is centralised at head office in Oslo. Currently, three people are dedicated to the financing aspects of projects under development. Functioning as financial advisers for the development teams, their aim is to steer the projects so that the structure and risk allocation become bankable. 

Structures proposed

When a project has reached the stage in the development that financing must be established, lenders are invited to propose financing for it. SN Power will propose a preferred structure and ask for competition on terms and conditions based on that structure. Lenders are also invited to propose new structures if they have alternative ideas.

Risk mitigation

Since projects are mostly located in emerging markets, some element of political risk mitigation must be offered to the lenders. This mitigation can come from offering insurance to commercial lenders or cooperating with multilateral lenders like the International Finance Corporation (IFC). SN Power has cofinanced with IFC on six projects in different countries and markets and has developed a good relationship with the world bank group.