Here are a few tips to consider for you to have a compelling capital raise story:
a. Engage the right transaction experts upfront to guide and support you through the process, i.e. work with an experienced financial adviser.
b. Conduct detailed project preparatory study, including feasibility/market study (technical, financial, commercial), business case and plan and having a robust financial model that tests the viability and reasonability of your numbers.
c. Where applicable, conduct an environmental & social impact assessment (ESIA) to international standards using a reputable consultancy company.
d. Understand and map the different lender/investor requirements.
e. Have the right project development partners with a track record and align everyone from the beginning on what is required to ensure that the project is bankable.
f. In a project for Africa for example, use an African bank as your lead arranger as they understand the local context.
g. Engage the right lender(s) and/or investor(s) early: rather pay upfront than incur unanticipated costs down the line.
h. Try and avoid locations where there are obvious environmental & social (E&S) concerns.
i. Maintain communication between the project’s finance, legal and development teams throughout the process to avoid surprises.
J. Be prepared to go through the process, don’t be in a hurry to achieve financial close, you may delay it further