Parkland Treasury services may offer funding for acceptable purposes, to pre-screened creditworthy entities with adequate liquid collateral valid for the term.
Parkland differs from most treasury firms by providing capital for 10 years or shorter, rather than short term debt-funded investments followed by asset sale or refinancing.
Having higher yield expectations and a moderately low cost of capital, through mid -term investment model, providing fixed terms and yields over the investment term. Security on assets normally not being required; unless otherwise deem necessary, and taking no part in asset management decisions.
Strong entities as counter-parties (e.g. lessee, charterer or off-taker, as appropriate); where assets are to be constructed, substantial builders with performance guarantees and/or a completion bond, who are engaged under a fixed-priced turn-key engineering, procurement and construction (EPC) contracts;
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Substantial operators and managers that are prepared to provide operations, maintenance agreements for the investment term and/or a maintenance contract for the same term with an annual non-use fee, where appropriate.
Alternatively, any off-taker would need to accept contractual step-in rights in the event there is a serious break in production; and any feedstock risk is managed through agreed feedstock quantum and base price contracts with a strong supplier for the same term as the off-take, with a floor and/or collar price to the feedstock to ensure its affordability throughout the term; and; Synchronicity of the key contractual arrangements for a project. For example, off-take, operations and maintenance, and feedstock contracts must match the investment term.
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