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  • Writer's pictureDP Funding

Securing Private Capital to Finance Sustainable Infrastructure

How DP Funding can help Project Owners

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In this article:

Sustainability in infrastructure refers to infrastructure development that ensures sustainable economic growth while preserving natural resources and ecosystems.

As the world seeks to achieve the United Nations' Sustainable Development Goals (SDGs), financing sustainable infrastructure has emerged as a critical tool to enable the development of infrastructure that is environmentally sustainable, socially responsible, and economically viable.

DP FUNDING (DPF) specializes in arranging project funding by connecting project owners or project sponsors with established private capital sources directly, excluding intermediaries or agent chains. Our prime objective is to aid in obtaining private debt funding for large-scale projects.

What is sustainable infrastructure?

Infrastructure projects for sustainability

Sustainable projects are aimed at promoting sustainable economic growth while preserving natural resources and ecosystems.

Projects may include renewable energy projects, green buildings, sustainable transportation systems, and water infrastructure.

These types of projects can deliver significant environmental, social, and economic benefits to communities and countries.

Infrastructure investment in sustainability

Infrastructure investment in sustainability refers to the allocation of capital to sustainable infrastructure projects as part of a strategy to achieve objectives to develop with sustainability.

Such investments can take many forms, including equity, debt, and hybrid financial instruments, and may be public or private in nature.

Private capital lenders for sustainable infrastructure

Private capital lenders play a critical role in financing sustainable infrastructure projects and mobilizing capital markets for sustainable investment.

They invest in sustainable infrastructure projects through a range of financial instruments, such as green bonds, and are increasingly incorporating environmental, social, and governance (ESG) criteria into their investment decision-making.

Why sustainable projects need private capital

Bankable projects

Bankable sustainable infrastructure projects are projects that can generate returns for investors while delivering environmental and social benefits.

Developing bankable projects that can attract private capital investment is essential for scaling up sustainable infrastructure investment.

Mobilizing private capital for sustainable infrastruc

Mobilizing private capital for sustainable infrastructure represents a significant opportunity to close the infrastructure financing gap.

Private capital can help bridge the shortfall in public sector financing and deliver sustainable infrastructure projects that benefit society and the environment.

ESG considerations in sustainable infrastructure financing

ESG considerations in sustainable infrastructure financing are essential to ensure that infrastructure projects deliver sustainable outcomes.

Integrating ESG considerations into investment decision-making can help investors identify risks and

opportunities associated with sustainable infrastructure investments.

How can the private sector finance sustainable infrastructure?

Infrastructure financing in the private sector

The private sector can finance sustainable infrastructure by investing in green infrastructure projects, using green bonds to fund projects, or by making equity investments in sustainable infrastructure funds.

Private investors in sustainable infrastructure

Private investors can invest in sustainable infrastructure by investing in infrastructure projects or sustainable infrastructure funds.

Private investors can also participate in public-private partnerships and other forms of collaboration that enable them to invest in infrastructure projects.

How DP Funding can help you secure project financing

Securing private capital for sustainable infrastructure often is an essential aspect of infrastructure development.

At DP Funding, we focus on financing complex transactions that do not qualify for traditional bank financing and have the ability to facilitate 100% project funding (provided the project has collateral).

Our lenders' project finance products are typically used for infrastructure, industrial projects, and public services that require long-term funding.

Unique project funding model

Our lenders have a unique project financing model that only requires project owners to provide initial equity or debt capital as collateral, which enables the lender to fund the project. We accept cash, bank instruments, stocks, or bonds as collateral, which remain with the lender or custodian until the project receives its required funding.

In contrast to typical 20/80 LTV models, our financial model takes into account the total value of the project, which is similar to the approach taken by equity investors. This method proves advantageous for project owners as it requires a lower initial down payment while resulting in higher overall project value or IRR.

Global partnerships

This distinctive financing solution is possible due to our sound financial standing, as well as our partnerships with private family offices, sovereign wealth funds, and our own capital.

We offer a complete range of project services, including a management team, an extensive network of asset managers and advisors, and financial and advisory services.

The lender provides funds for projects based on building relationships and prioritizing thorough screening.

DP Funding as your project funding connector

DPF operates as a Premium Project Funding Placement firm and plays a significant role in the lender's financing process, including loan origination, servicing, and equity and debt processing for clients.

We work with lenders directly, hence we speak the lenders' language. We know what lenders are looking for in projects, and how they want projects presented.

As an important component of the funding process, DPF values professionalism, confidentiality, integrity, and relationships with clients.

Our team will guide you through every aspect of securing funding for your project, utilizing our expertise and commitment to excellence to turn your project goals into a reality.

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