Project & Export Finance

HSBC’s Project and Export Finance team is the leading adviser and arranger of project financing in Saudi Arabia in addition to Export Credit Agency supported finance.

Our clients range from private sector developers to government organizations seeking partnership with the private sector. The award winning team brings in-depth experience in the oil and gas, petrochemicals, mining, metals, power, utilities, transportation and infrastructure sectors. Below is a list of products that are offered:

  • Project Financing
  • Export Financing
  • Asset and Structured Finance

Project & Export Finance

We have considerable expertise in structuring and arranging of multisource financing including Saudi, regional and international banks (conventional and Islamic), ECAs and government funding.

HSBC's Project and Export Finance team has a record of sustained success over many years as by being ranked highly in various league tables, including Dealogic ranking as # 1 financial advisor in EMEA in 2014. Moreover, HSBCs expertise, performance and leading position as a Project Finance House have been praised year-on-year by many of the leading industry voices (including Euromoney, EMEA Finance, Infrastructure Journal, the Asset and others) both through house and project awards.

  • Project finance is the medium to long-term financing of projects based upon the projected cash flows of the project.
  • The debt is secured by the project assets and repaid from project cash flow with only limited recourse to the project sponsors.
  • The predominant sectors for project finance are oil and gas, petrochemicals, mining, metals, power, utilities, transportation and infrastructure.
  • Project financing techniques are also used to develop public-private partnerships (“PPPs”).
  • Due to the complexity of project finance structures, most project sponsors engage specialist financial advisers such as HSBC to develop a credit-worthy and bankable financial structure for the project.

We provide both, Project Finance Advisory and Arrangement services:

  • Project Finance Advisory work encompasses the provision of advice on the whole structure of a project, including but not limited to bid strategy, capital / debt structuring, identification and allocation of project risks, contractual structuring, financial modelling, project management, bankability review etc.
  • Project Finance Debt Arranging work encompasses structuring, coordination and provision of a marketing package leading to debt arrangement for a project.

  • Export Financing is a medium to long-term financing provided to corporates, governments and project companies to finance the import of capital goods and services, e.g., equipment for a power station, railway line, telecoms network, etc.
  • Export Credit Agencies are government-backed agencies created to support their countries' exports; an ECA typically provides a guarantee or insurance policy to a commercial bank (e.g. HSBC) for a loan provided to the buyer of the goods.

  • Tailor-made products help to diversify funding sources, minimise funding costs or maximise investment returns using most forms of financial instrument including finance leasing.
  • Physical assets financed have included aircraft, real estate, ships, land transport, power facilities and infrastructure.