HGK acts in an advisory and debt capital sourcing capacity. We accept client project sponsors with greenfields projects meeting defined credit and risk allocation goals. Our focus is on senior, secured, non-recourse debt; geared to maturities of 10-30 years, in the renewables, natural resources, commercial property, and other sectors.
Creating Value in Emerging Markets & Capital Structure
To structure non-recourse debt funding for a project, the full project cycle – identification, development, due diligence/appraisal, implementation and management – must be characterized by clear quality criteria. HKG subjects project proposals against three levels of "qualifying criteria" (credit, country, and development criteria) to ensure success in structuring debt capital for a new project.
Credit Criteria
Proposed projects are tested against the following investment criteria:
- Project Revenue: Commercially viable projects wherein the revenue stream will support the debt service and equity accumulation.
- Project Management: Only those projects are considered where the project sponsor demonstrates a suitable management team.
- Sectors: HKG will consider projects in the following sectors: energy and power production and generation, oil and gas, petrochemicals, ports, airports, telecommunications, water production, agro-industry, and commercial property development.
- Project Appraisal: HKG will consider projects with a stabilization value which will collateralize senior debt.
Country Criteria
The criteria used for selecting countries include the following:
- Local project sponsor support and investment.
- Commercial and foreign exchange risks to the revenue stream are minimal or insured.
- Projects that are a can be designed, implemented, and operationalized within 18-24 months
Capital Structure
HKG intends to capitalize most projects through private placement bond or notes issues to institutional investors.
