Project Finance Feasibility Study (“Feasibility Study” hereinafter) is a service designed to provide companies seeking financing for new businesses and financial institutions considering loans to such companies with systematic and professional analytic opinions to support their investment decisions.
Feasibility study combines analysis of financial aspects of the project such as industry analysis, economic feasibility analysis, cash flow analysis, sensitivity analysis, and structural analysis and analysis from the technological perspective carried out by professionals of specific fields. Our feasibility study provides comprehensive opinions on the probability of timely repayment of principal and interest on PF loans and overall economic feasibility. We provide specialized services for each segment such as real estate, SOC, corporate finance, and overseas project finance.
Real estate development projects entail a wider variety of risks than other projects. Real estate development projects are exposed to diverse risks associated with insolvency of the developer, permissions, sale of properties, and completion of the construction. Therefore, thorough understanding of each risk is required along with credit enhancement mechanisms to hedge against the risks.
Korea Investors Service provides professional opinions on the probability of timely repayment based on in-depth analysis of risks and adequacy of credit enhancement mechanisms.
Based on the rich experience and know-how that we have amassed over several years, we provide specialized services for all segments of real estate projects including apartment houses, residential/commercial complexes, commercial buildings, semi-residential office buildings, office buildings, flatted factories, resorts, hospitals, and elderly welfare facilities.
SOC project finance feasibility study is conducted as part of the negotiations between developers seeking financing for private funded infrastructure projects and financial institutions. Financing for SOC projects often involve syndication due to the large amount and long maturity of financing. Developers and financial institutions use our feasibility studies as an important basis of decision on syndication and investments.
Korea Investors Service has abundant experience in feasibility studies for diverse areas of SOC projects including highways, ports, logistics centers, warehouses, mines, and housing site development projects.
Companies seeking financing/refinancing for mergers or acquisitions and financial institutions considering loans to such companies need objective and professional opinions for their decisions. Tapping our 20 years of experience in corporate credit rating, we provide professional analytic opinions based on objective evaluation of the risks associated with the target company.
We have participated in many large-scale deals including Hanbo Steel, Inchon Oil Refinery, Hynix Semiconductor, Hi Mart, and Ssangyong Motors to name just a few, through which we demonstrated strong analytic prowess.
Compared with domestic projects, overseas projects present much more challenges in evaluation of risks. It is more difficult to gauge risks accurately, and risks that do not have to be considered in domestic projects such as those related with the political situation, infrastructure, and local sponsor in the country where the project is located have to be evaluated. Utilizing our wide networks, we provide high-quality analytic services for overseas projects through in-depth analysis of risks.
We have ample experience in overseas project financing feasibility studies. We have experience in a wide range of sectors such as mines, power plants, highways, apartment houses, and commercial/residential complexes. Our experience also covers many different regions including Indonesia, China, and Kazakhstan.
Developers seeking financing for new business, companies or individuals that need financing for acquisitions, financial institutions or loan syndicates that are considering roll-over of loans, and developers that want to participate in private funded infrastructure projects can utilize Korea Investors Service’s feasibility studies for better access to financing and adequate management of credit risks.
