What is Debt Protection Insurance (DPI™) and how does it work?
DPI™ is an insurance policy designed for project developers seeking to obtain funding for their project including where the chosen technology has little or no track record. It provides a financial sum that protects against an unexpected reduction in the process availability which results in the project being unable to meet its debt service and operational requirements.
DPI™ reduces investment risk by supporting debt service payments should the operation of the technology or process fail to provide the level of availability necessary to cover debt service and the operating and maintenance costs.
The core focus is understanding the technology risks including those associated with new, relatively unproven technologies and the long-term performance of projects using those technologies. We are not constrained by geography or the magnitude of the risks that our clients seek to insure or finance.
Robust due-diligence determines an agreed level of availability that enables the issue of a single premium non-cancellable 10-year insurance policy – underwritten by Fidelis Underwriting Ltd (Fidelis) - that can provide up to $50 Million in cover. This protects the investors against the unexpected under-performance of the process thereby ensuring payment of debt service.
DPI™ helps to significantly reduce project costs and enhance a project to lenders.by way of opening additional options for risk capacity and protection. Further, it complements lenders other strategies for distributing risk and managing their capital enabling a broader and more effective approach to managing overall project finance risk.
WHO SHOULD BE INTERESTED IN DEBT PROTECTION INSURANCE (DPI™)?
• Project Developments in Energy and Power, Renewable Energy, Biofuels
• Insurance brokers
• Infrastructure funds
• Equity and Debt providers
What you get:
• A 10-year, non-renewable insurance policy that guarantees the uncertainties of process availability backed by the financial strength of Fidelis.
• Protection that is typically less expensive than using an EPC contractor to protect long term risk
• An enhanced project that is attractive to lenders plus reduced lender credit risk
• Reduced Operation and Maintenance cost
• A higher percentage of lender interest and funding
EC3 Brokers Ltd are the exclusive world-wide placing broker for Debt Protection Insurance (DPI™) supported by a robust due-diligence process undertaken exclusively by Allied Project Services Ltd (Allied) under their Project Risk Platform.