Tried & Tested Social or Green Project Finance

Green Financing has a critical role to play in working towards net-zero and in the fight against climate change. 

But what exactly is it, and why is it so important? The Climate Change Committee estimates that the UK alone will need to invest £1.4 trillion between 2020 and 2050 to reach net zero (where greenhouse gas emissions, particularly carbon dioxide, are minimised). This represents a significant opportunity for growth of the green economy, creating new green jobs while reducing carbon emissions. 

Project Finance is also an alternative to ping programmes that fail. Ping was a bank-to-bank commutation via a MT199 designed to allow the trade desk to check the status of a client account and to ensure the agreed funds are still on balance. The clients bank will normally allow this ping process by submitting a Ready/Willing/Able (RWA) and MT799 confirming the administration of a block, reserve and hold of funds. Ping programs do not work without this process which is why 99% of them fail!

Vital Capital’s unique network may well be able to offer you an alternative green project finance route. Subject to your minimum financing 

requirement being for supersized projects. The way the structure works, your assets/funds are only used for a non-recourse line of credit. Which is in turn amplified through the program’s operation. Your underlying assets are therefore buffered from encumbrance through a proprietary arrangement, meaning zero risk. Such opportunities are invite only, also for investors who understand the market and landscape. Investors that also have a serious project funding requirements. This is also the reason small cap funds of 1m – 10m are aggregated. Simply put, because most Tier 1 trade programs start from a capital adequacy of US$100 million minimum. This restriction therefore, prevents so many serious investors from realising their required project funding. No programme may start unless there is a sufficient liquidity, polled or otherwise to back each trades transaction. 

Small cap funds are therefore always aggregated until the required starting balance of a $100m program entry is achieved. At Vital Capital we can successfully place clients into green project finance programs which start at 1m USD and do not require a pooling or a ping program, as the trader will work off the client’s own sub-account, for which the client always remains the sole beneficiary. It is also secure, meaning any client’s lawyer can monitor the process. The capital and profits are also insured by the HSBC trade platform. 

If you are fed up with chasing ping programmes, then clients MUST understand they need to move their funds to a top 30 European, UK or Singaporean Bank. However, take comfort that there is full protection with the RIGHT Tier One Trader. For more information on your specific project funding requirements, please CLICK here to e-mail Us to complete our form, alternatively please leave me a message on linkedIn or LinkedIn so we can arrange to speak. Click on either footer icons below.

See our Wholesale Banking for application procedures.