Strategy

TCM puts risk mitigation in place before development. Each project has off-take in sight prior to spending development capital.

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TCM will be targeting the development equity portion of the life of a project, an area that is under served by investors  banks. While this phase is generally the highest risk part of the life of a project, it offers some of the strongest returns

 

The goal of development equity is to provide enough capital to get the project “shovel ready” and to a financial close. Once development equity has been spent a project is ready to raise cheaper project level equity along with a construction loan. The project level equity typically will come from private equity / infrastructure funds, while the construction loan will come from banks.

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As construction progresses, the risk profile of the asset under development drops until the project reaches COD when it is fully running and only carries operating risk.

 

Once the asset has reached COD, permanent financing is put in place such as a bond that matches the tenor of the offtake agreement