Recapitalization Financing for Shovel-Ready Infrastructure Projects

Infrastructure projects can spend years moving through feasibility, engineering, permits, land acquisition, environmental work and commercial negotiations before they are ready to build.

By that stage, the original capital structure can be obsolete. Development loans are approaching maturity. Early investors want liquidity. Construction costs have changed. Sponsor equity has been consumed by pre-development expenditure. A strategic investor may now be willing to enter because the highest-risk development work has already been completed.

Financely arranges recapitalization and construction capital for shovel-ready infrastructure projects that need to refinance development-stage obligations and establish a bankable capital stack before notice to proceed.

What Shovel-Ready Should Mean to a Lender

The phrase should describe a project whose major development risks have actually been resolved.

Depending on the asset, this can mean site control, key permits, environmental approval, substantially complete design, defined EPC cost, revenue contracts, grid connection or concession rights and a credible construction schedule.

A concept deck and preliminary feasibility study do not constitute a shovel-ready project.

Sponsors can review Financely's infrastructure funding requirements before requesting institutional placement.

Refinance Development Capital

Early-stage project capital is expensive because investors are funding a project before it is bankable.

Once permits and contracts are secured, the risk has changed. The project can potentially refinance bridge loans, sponsor advances and development capital into a construction financing package with a lower weighted cost of capital.

Bring in a New Institutional Equity Partner

The original developer may have created substantial value by moving a project from concept to construction readiness while lacking the balance sheet to fund its equity requirement through completion.

An infrastructure fund, strategic operator or institutional co-investor can provide construction equity in exchange for an agreed ownership interest.

This can also recapitalize part of the developer's invested capital while preserving an ongoing economic interest in the project.

Senior Construction Debt

Once the project is sufficiently developed, senior debt can fund eligible construction expenditure according to an agreed draw schedule.

Debt sizing will depend on contracted revenue, EPC risk, contingency, sponsor strength, completion support, jurisdiction and the lender's downside case.

Financely covers the broader capital stack through its large-scale infrastructure finance platform.

Preferred Equity and Mezzanine for the Funding Gap

A project can be ready for construction and still have an incomplete equity stack.

Preferred equity or subordinated debt can fill part of the gap where the project's forecast cash flow supports the additional capital.

Junior investors generally expect materially higher returns than senior lenders because they absorb losses earlier and receive repayment later.

Credit Enhancement Where Country or Offtaker Risk Is the Constraint

A technically mature project can still struggle to attract debt because lenders are uncomfortable with the public-sector counterparty, country risk or currency convertibility.

Guarantees and risk-sharing instruments can potentially address those defined exposures without requiring the sponsor to restructure the entire project.

Financely offers credit enhancement structuring for emerging-market infrastructure where the transaction qualifies.

Eligible Project Types

• power generation and storage;
• transmission infrastructure;
• ports and logistics infrastructure;
• roads and transportation;
• telecommunications infrastructure;
• water and wastewater projects;
• digital infrastructure;
• industrial infrastructure; and
• PPP and concession-backed projects.

What We Need Before Distribution

• total project cost;
• development spend to date;
• existing debt and investor obligations;
• permits and project rights;
• EPC budget;
• revenue contract or concession;
• financial model;
• construction schedule;
• sponsor equity;
• new capital required; and
• target financial close date.

We Structure Before We Distribute

Financely's work begins with the project and capital structure, not with mass lender outreach.

We review the existing liabilities, determine the financing gap, prepare the lender case and identify which capital providers are appropriate for each part of the recapitalization.

The service is provided on a paid advisory mandate. Financing remains subject to third-party underwriting.