Global Energy Advisory structured and developed Prisim to help organisations fund their energy investments.
Prisim is the quickest and lowest cost method for good quality businesses to fund their energy investments. The key attributes and how the funding works is as follows:
- Potentially two tranches of finance, £500 million each, one for the public sector and one for the private sector.
- Clients seeking to raise capital to pay external suppliers for a project apply through Prisim for the funding.
- Importantly there is no cost to the firm arranging the investment.
- Vendors seeking to offer clients a funding solution can propose Prisim.
- Funding is dependent upon on the bankability of the Buyer, this is determined through Prisim Energy.
- Key to Prism financing is that the supplier must agree to have their invoices discounted by a small amount. The rate will be Libor plus an agreed amount to cover the credit risk of the buyer. Cash advanced will be non-recourse to the supplier.
- The funds are allocated based on the buyer's invoice approval and disbursed directly to the suppliers.
- Once the program is established, the approval process is a relatively swift and is based upon the "bankability" of the buyer and the appetite of a large basket of banks' for the buyer's(investors) payment obligation.
- Typically the payback period will be 1-3 years for sums of £50,000 to £20 million.
- To facilitate payment: we encourage clients to utilise our Prisim load trading opportunity which lets them earn significant income.