First of Kind: Financing Advanced Biorefineries, Part II
Biofuels Digest
February 24, 2011
By Biofuels Digest special correspondent Tim Sklar
Part 2-On Quantifying Risks
In Part I of this three part article titled “On Identifying Risks”, discussions were included that focused upon the high risk nature of advanced bio-refinery projects, why financing is hard to obtain what can be done to improve the odds.
In Part 2 titled “On Quantifying Risks” a summary of due diligence inquiries that project developers can expect to be subjected to is presented along with a a list of typical concerns potential financial backers have with respect to perceived risks. In addition, a set of bio-refinery specific “what if” questions are included, because many of them will be asked. It was hoped that the material included in Part 2 will ultimately be used as a useful guide in assembling information and in conducting analyses that will be needed when preparing loan requests, applications for loan guarantees, investment memoranda and prospectuses.
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