Pilot Details |
|
|---|---|
| Pilot Name | Facilitation Services for a Financial Institution |
| Client Type | Financial Institution |
| Country | Croatia |
| Solution Type | Facilitation services |
Financial institution that was pilot provider is operating within a larger international financial group. The main economic activity of financial institution is the provision of financial and operational leasing services.
Although the institutions main economic activity is financial and operational leasing, institution is exploring new opportunities for expanding its services in the Croatian market. Given the current economic circumstances and the EU’s focus on the energy transition, the institutions areas of interest include energy sector projects related to energy efficiency and renewable energy sources. With the current market trends and the growth of green finance both globally and across the EU, institution market conditions.
Breakdown
The institution was interested in facilitation services, such as matchmaking with potential project owners and preparing a project appraisal of a possible project, as they are looking to expand their business operation to the energy sector. REGEA approached the financial institution to present the refinancing model and to discuss the potential for using such or a similar model in their ongoing operations. Although the institution is primarily involved in leasing operations for various assets, they are looking for new opportunities in other emerging sectors, such as the energy sector. REGEA set up an introductory meeting between the EES provider and the financial institution to discuss the collaboration potential and to see how their business interests and strategies align.
After the initial meeting, both parties concluded that there was a potential to continue with the collaboration. The financial institution engaged REGEA to prepare an appraisal of the EES project initiated by the EES provider, emphasising the understanding of technical risks and determining the project’s feasibility.
Facilitation services in form of technical, legal, and financial “due dilligance” services for financial institutions seem to be highly required by financial institutions. Lack of knowledge regarding processes and phases in EES project as well as project related risks leaves financial institutions reluctant in financing these projects without external expert review od project proposal.
Even though tools developed under REFINE can help financial institutions to ease and speed up the process of due diligence of EES projects to be financed or refinanced, there is still a need for external expert advisory to financial institutions. Further development of performance guarantee instruments as well as further development of data base of all existing EES projects with details on problems and risks in different phases of EES project development should also help financial institutions to learn more about EES projects and to gather more experience.
For more information, please contact: