Banking and debt
Bank finance and debt funding for projects in South Africa
Bank credit is a documented process, not a conversation. 36M Capital prepares projects so that a credit committee can follow the case from security through cash flow to cover, without gaps to fill in.
Why funding stalls before it starts
A relationship banker can support a project, but the decision is taken by a credit function that never meets the sponsor. It reads a submission, and what it cannot verify it discounts.
Projects are most often declined for structural reasons rather than commercial ones: equity contribution unclear, security imperfect, cash flow unringfenced, counterparty credit unproven, or a construction contract that leaves cost risk with the borrower.
We prepare the file to the standard the credit process expects, and identify early where the structure — not the project — needs to change.
Sources of capital
Sources of debt for projects
- Commercial bank project and term debt
- Senior secured facilities sized on cash flow cover, with construction and operating phases documented separately.
- Corporate and balance-sheet lending
- Facilities to an established operating entity where the sponsor's own covenant carries the exposure.
- Development finance institutions
- Longer tenor and mandate-driven lending where developmental outcomes sit alongside credit criteria.
- Mezzanine and structured debt
- Subordinated capital bridging the gap between senior debt capacity and available equity, priced accordingly.
- Asset, equipment and trade finance
- Facilities secured on specific assets or receivables, often more accessible than a full project facility.
- Guarantees and credit enhancement
- Partial guarantees and insurance products that make an otherwise marginal credit bankable.
What funders test
What a credit committee tests
- Sponsor equity and commitment
- Evidenced equity contribution, source of funds, and what the sponsor loses if the project fails.
- Debt service cover
- Cover ratios through base and downside cases, with headroom that survives cost overrun and delay.
- Security package
- Perfectible security over land, assets, shares, accounts and material contracts, with the legal path confirmed.
- Contract and cost certainty
- A construction and procurement structure that allocates cost and completion risk to a party able to carry it.
- Counterparty credit
- Offtakers, tenants and operators assessed on their own standing, since the cash flow depends on them.
- Compliance and KYC readiness
- Entity, beneficial ownership, tax and regulatory documentation complete before onboarding begins.
36M HIP™
How 36M Capital prepares the project
We assess the project against the credit tests above, resolve the structural and documentary gaps with independent specialists where required, and assemble a submission-ready file with the risks stated rather than buried.
- 01
Identify
Define commercially relevant opportunities.
- 02
Screen
Assess strategic fit, commercial potential and sponsor capability.
- 03
Shape
Develop the commercial model and delivery strategy.
- 04
Prepare
Coordinate governance, documentation, partnerships and readiness.
- 05
Validate
Assess preparedness for institutional engagement.
- 06
Transition
Introduce mature opportunities into formal capital structuring and transaction processes.
Preparing a project for credit
Bring the project as it stands, including any facility that has already been declined. We begin with a mutual non-disclosure agreement and a structured screening against lender criteria.