How to maximize your infrastructure finance project

February 24, 2022

Project finance is complex, involving many counterparties, various risks and often significant financial investments. Learn how partnering with a global corporate trustee can help you navigate these intricate transactions.

 

Each infrastructure finance deal is unique, with its own specific structure, challenges and requirements. The instruments used will dictate what type of services you’ll need. Some circumstances might call for multiple service providers, but a more ideal solution is to find one provider that can perform all necessary roles. 

 

Roles of a trustee and agent

Due to the labor-intensive nature of project finance transactions, the trustee and agent play a key role in managing communication between various stakeholders. Working with a full-suite corporate trustee can add value, significantly enhancing the operational efficiency of the project. Whether the infrastructure asset is financed by loan or note issuance, having a partner that can provide the full breadth of roles can help ensure seamless servicing throughout the life of the project.

Roles that may be required on the financing include:

  • Facility/loan/administrative agent: primary contact between the borrower and lenders for information and cash movement 
  • Trustee: protects investor interests
  • Noteholder agent: primary contact for information and proceeds on note issuance, including privately placed notes 
  • Collateral/security agent: holds security for the benefit of creditors
  • Intercreditor agent: coordinates different classes of creditors 
  • Account bank: holds project accounts and manages transaction cash
  • Escrow agent: holds escrow proceeds if required for an asset financing 
  • Common depository: holds cleared notes within clearing systems (Euroclear/Clearstream, DTC)
  • Settlement agent: primary contact for security eligibility with clearing systems, and facilitates security movement between investors and issuer/borrower on closing 
  • Paying agent: facilitates payment of debt service proceeds to investors

 

Rely on a full-service partner

Appointing a third-party trustee and agent to perform all roles can produce numerous efficiencies and benefits. Some of these include the following:

  • Coordination of multiple stakeholders and workstreams 
    • Onboarding 
    • Account and deal setup 
    • Documentation 
       
  • Assistance for investors at every stage of the project lifecycle 
    • Coordination of complex project consents, waivers and amendments 
    • Project monitoring 
    • Proactive collection and distribution of project information and covenants
       
  • Streamlined operations 
    • Pricing synergies for being appointed on multiple roles 
    • Engagement of a single law firm for the trustee and agent 
    • Enhanced internal and external communication

 

Trusted expertise

Service providers vary greatly in terms of size, specialization and experience. For a successful relationship, investors should look for a highly rated financial institution that is appropriately licensed in all necessary jurisdictions.

Finding a partner with extensive experience servicing all debt vehicles can help guide your decision-making with strategic insights and proactive solutions.

Infrastructure finance projects become less complex and more manageable when you work with a reputable, independent partner for your debt administration needs.

 

U.S. Bank administers a variety of infrastructure assets types, and we have the dedicated expertise to assist investors at every stage of the project lifecycle. Check out our extensive suite of services for debt financing here or contact Lars Anderson at lars.anderson@usbank.com or Alejandro Hoyos at alejandro.hoyos@usbank.com.

Related content

High-yield bond issuance: how to avoid 5 common pain points

New technology streamlines M&A transactions

Should rising interest rates change your financial priorities?

How to talk to your lender about debt

Tailor Ridge eBill case study

How to use debt to build wealth

4 benefits of independent loan agents

Middle-market direct lending: Obstacles and opportunities

How to build and maintain a solid credit history and score

How I did it: Deciding whether to buy an RV

Take the stress out of buying your teen a car

Streamline operations with all-in-one small business financial support

Managing complex transactions: what your corporate trustee should be doing

Beyond Mars, AeroVironment’s earthly expansion fueled by U.S. Bank

Emerging trends in Europe: An outlook from multiple perspectives

Know your customer: How updated rules affect M&A closings

Personal loans first-timer's guide: 7 questions to ask

Choosing your M&A escrow partner

How to use credit cards wisely for a vacation budget

Evaluating interest rate risk creating risk management strategy

Are savings bonds still a thing?

Opening a business on a budget during COVID-19

What’s a subordination agreement, and why does it matter?

What’s your financial IQ? Game-night edition

Understanding the true cost of borrowing: What is amortization, and why does it matter?

5 financial goals for the new year

Parent checklist: Preparing for college

What are conforming loan limits and why are they increasing

Should you get a home equity loan or a home equity line of credit?

How to manage your money: 6 steps to take

Good debt vs. bad debt: Know the difference

Avoid these 6 common mistakes investors make

How to establish your business credit score

What is a CLO?

When to consider switching banks for your business

5 myths about emergency funds

Common unexpected expenses and three ways to pay for them

Easing complex transactions: Project finance case studies

6 pandemic money habits keep for long term

How having savings gives you peace of mind

Tips to overcome three common savings hurdles

Things to know about the Servicemembers Civil Relief Act

5 tips to use your credit card wisely and steer clear of debt

Money Moments: How to finance a home addition

How I did it: My house remodel

Is it the right time to refinance your mortgage?

4 questions to ask before you buy an investment property

What is a home equity line of credit (HELOC) and what can it be used for?

Is a home equity line of credit (HELOC) right for you?

10 uses for a home equity loan

How to use your home equity to finance home improvements

What to know when buying a home with your significant other

Webinar: Mortgage basics: What’s the difference between interest rate and annual percentage rate?

Webinar: Mortgage basics: How much house can you afford?

Webinar: Mortgage basics: Buying or renting – What’s right for you?

Webinar: Mortgage basics: What is refinancing, and is it right for you?

Webinar: Mortgage basics: Prequalification or pre-approval – What do I need?

Webinar: Mortgage basics: How does your credit score impact the homebuying experience?

Webinar: Mortgage basics: Finding the right home loan for you

Webinar: Mortgage basics: 3 Key steps in the homebuying process

8 steps to take before you buy a home

These small home improvement projects offer big returns on investment

What is refinancing a mortgage?

How do I prequalify for a mortgage?

6 questions to ask before buying a new home

Student checklist: Preparing for college

Webinar: Uncover the cost: College diploma

The A to Z’s of college loan terms

Co-signing 101: Applying for a loan with co-borrower

Practical money skills and financial tips for college students

How I did it: Paid off student loans

Everything you need to know about consolidating debts

7 steps to keep your personal and business finances separate

Know your debt-to-income ratio

Your quick guide to loans and obtaining credit

How to use your unexpected windfall to reach financial goals

Test your loan savvy

U.S. Bank asks: What do you know about credit?

How to improve your credit score

Is a home equity loan for college the right choice for your student

How to apply for federal student aid through the FAFSA

Be careful when taking out student loans

Your financial aid guide: What are your options?

5 tips to use your credit card wisely and steer clear of debt

ABL mythbusters: The truth about asset-based lending

Collateral options for ABL: What’s eligible, what’s not?

Luxembourg's thriving private debt market

Employee benefit plan management: Trustee vs. custodian

High-yield bond issuance: 5 traits lawyers should look for in a service provider

Renewing your custody contracts? Negotiate the fees.

Case study: U.S. asset manager expands to Europe

How jumbo loans can help home buyers and your builder business

Programme debt Q&A: U.S. issuers entering the European market

Top 3 considerations when selecting an IPA partner

When small companies buy big: The potential of asset-based lending

How to maximise your infrastructure finance project

Consolidating debts: Pros and cons to keep in mind

Questions to ask before buying a car

What you should know about buying a car

How to choose the best car loan for you

What you need to know before buying a new or used car

Can you take advantage of the dead equity in your home?

How to get started creating your business plan

How to fund your business without using 401(k) savings

Costs to consider when starting a business

How a small business is moving forward during COVID-19

Prioritizing payroll during the COVID-19 pandemic

5 tips to help you land a small business loan

Investing in capital expenditures: What to discuss with key partners

Can ABL options fuel your business — and keep it running?

Tech lifecycle refresh: A tale of two philosophies

At your service: Outsourcing loan agency work

Maximizing your infrastructure finance project with a full suite trustee and agent

An asset manager’s secret to saving time and money

An investor’s guide to marketplace lending

3 innovative approaches to ESG investing in Europe

U.S. Bank Global Corporate Trust is a trading name of U.S. Bank Global Corporate Trust Limited, U.S. Bank Trustees Limited and Elavon Financial Services DAC (each a U.S. Bancorp group company).

U.S. Bank Global Corporate Trust Limited is a limited company registered in England and Wales having the registration number 05521133 and a registered address of 125 Old Broad Street, Fifth Floor, London, EC2N 1AR. U.S. Bank Global Corporate Trust Limited, Dublin Branch is registered in Ireland with the Companies Registration Office under Reg. No. 909340 with its registered office at Building 8, Cherrywood Business Park, Loughlinstown, Dublin 18, Ireland D18 W319.

U.S. Bank Trustees Limited is a limited company registered in England and Wales having the registration number 02379632 and a registered address of 125 Old Broad Street, Fifth Floor, London, EC2N 1AR.

Elavon Financial Services DAC (a U.S. Bancorp Company), trading as U.S. Bank Global Corporate Trust, is regulated by the Central Bank of Ireland. Registered in Ireland with the Companies Registration Office, Reg. No. 418442. The liability of the member is limited. Registered Office: Building 8, Cherrywood Business Park, Loughlinstown, Dublin 18, Ireland D18 W319. Directors: A list of names and personal details of every director of the company is available for inspection to the public at the company’s registered office for a nominal fee.

In the UK, Elavon Financial Services DAC trades as U.S. Bank Global Corporate Trust through its UK Branch from its establishment at 125 Old Broad Street, Fifth Floor, London, EC2N 1AR (registered with the Registrar of Companies for England and Wales under Registration No. BR020005). Authorised and regulated by the Central Bank of Ireland. Authorised by the Prudential Regulation Authority and with deemed variation of permission. Subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details of the Temporary Permissions Regime, which allows EEA-based firms to operate in the UK for a limited period while seeking full authorisation, are available on the Financial Conduct Authority’s website.

All banking services are provided through Elavon Financial Services DAC. U.S. Bank Global Corporate Trust Limited and U.S. Bank Trustees Limited are Trust Corporations and not banking institutions and are not authorised to carry on banking business in the United Kingdom, Ireland or any other jurisdiction. 

U.S. Bank National Association is not responsible for and does not guarantee the products, services, performance or obligations of its affiliates.

Start of disclosure content

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rate and program terms are subject to change without notice. Mortgage, home equity and credit products are offered by U.S. Bank National Association. Deposit products are offered by U.S. Bank National Association. Member FDIC.

U.S. Bank is not responsible for and does not guarantee the products, services or performance of U.S. Bancorp Investments, Inc.