Typical situation no. 28
A bank is reviewing a €180M financing for a 60 MW data center. The sponsor's file states "connection secured, PTF signed". The credit committee wants to understand what this document actually covers before reaching a decision.
WHAT IS BLOCKING
- An accepted connection offer (PTF) is not a connection agreement: it may contain conditions, milestones and lapse clauses.
- The deposits paid and the deadlines for signing the connection agreement determine whether the capacity reservation remains valid.
- The revenue timeline in the business plan rests entirely on this date.
WHAT WE DO
- Analysis of the connection document and its actual status.
- Verification of payments made and upcoming deadlines.
- Assessment of the timeline and the risk of slippage.
- Drafting of conditions precedent and undertakings to request from the sponsor.
WHAT YOU GET
- A grid connection due diligence note for the credit committee.
- Recommended covenants and conditions.
- An opinion on the commissioning date to use in the financial model.
Typical format: Targeted due diligence, two to three weeks. Every assignment is scoped in writing before it starts.
THE EXPERT FOR THIS
Typical situation, based on real enquiries and anonymised. Figures are illustrative.
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