Project Finance Feasibility Study (hereinafter the “Feasibility Study”) provides systematic expert opinions that can help companies seeking project financing for new businesses and financial institutions considering loans to such companies make informed investment decisions.

The Feasibility Study is conducted based on a combined approach: It analyzes financial aspects of a PF deal, such as industry, economic feasibility, cash flows, sensitivity and structure, while also looking at technological aspect of the deal through the eyes of experts in specific fields. The Study aims to give opinions on the probability of timely repayment of principal/interests on PF loans and economic feasibility. Korea Investors Service provides such services by further segmenting it into Real Estate PF, SOC, Acquisition Financing, and Overseas PF.

Compared to other types of projects, real estate development projects are exposed to a wider range of risks - insolvency risk of the developer, permission risk, pre-sell risk, and completion risk. Therefore, thorough understanding of each risk is required along with credit enhancement mechanisms to hedge against such risks. Korea Investors Service provides professional opinions on the probability of timely repayment based on in-depth analysis of various risks and adequacy of credit enhancement mechanisms. Based on the rich experience and know-how that we have amassed over the past years, we provide specialized services for all segments of real estate development, including apartment houses, residential/commercial complexes, commercial buildings, semi-residential office buildings, office buildings, flatted factories, theme parks, condominiums, golf 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. SOC projects often involve syndication as it requires large-scale, long-maturity financing. Developers and financial institutions use our Feasibility Study as an important basis of decision on syndication and investments. Korea Investors Service has abundant experience in the Feasibility Study 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 ratings, 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 political, infrastructure, and local sponsor risk, have to be evaluated. Based on our extensive network and rigorous analysis of relevant risks, we provide high-quality analytic services for overseas projects. We have ample Feasibility Study experience for diverse overseas project financings such as mines, power plants, highways, apartment houses, and commercial/residential complexes. We also achieved geographic business diversification across Indonesia, China, Kazakhstan, etc.

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 Study for better access to financing and adequate management of credit risks.