Taylor-DeJongh (TDJ) is an independent, specialist merchant banking firm that focuses on providing creative, objective capital solutions to its water and infrastructure clients globally. The firm has over 24 years of success in providing project financing advisory services; infrastructure project development and structuring; solicitation strategy development; private equity, asset management and fund management services; and debt and equity raising. TDJ has arranged financings with virtually all of the major international banks, and has expertise in private capital placements with institutional investors and trading companies worldwide. TDJ is globally recognised as the leading expert in all OECD export credit agency and multilateral financings. The firm's principals are located in Washington D.C. and London.
TDJ has internationally recognised expertise in:
- Structuring emerging market transactions
- Understanding the legal, regulatory, and political climates of the emerging markets
- Knowing the appetite for financing in the capital and bank markets, and from institutional investors, from private placements, and trading houses
- Knowing the multilateral and bilateral official sources of political risk insurance, credit enhancements, or financing throughout the world
This expertise includes transaction experience with OPIC, U.S. Export-Import Bank, all other OECD export credit agencies, The World Bank, IFC, Asian Development Bank, IDB, EBRD, the African Development Bank, and USAID's GDA. TDJ has closed transactions in 75 countries with the overwhelming majority of these occurring in emerging markets. Consequently, TDJ is intimately familiar with the unique challenges associated with developing project commercial structures and arranging financing from international institutions in these countries and from the official agencies.
TDJ has a proven track record of successfully structuring, financing, and closing complex international transactions, especially limited recourse project financings. Since 1994, the company has advised on over $70 billion worth of infrastructure financings. Taylor-DeJongh has been involved in a number of water and wastewater systems that have involved feasibility studies, analysis of the federal and local legal requirements, identification of the various financing mechanisms available for models including design/build/operate concessions, recapitalization, debt/equity raising and privatizations. This experience makes Taylor-DeJongh very aware of the political, legal, regulatory and financial challenges of private sector water and wastewater projects.
Illustrative water resource management global projects
NamWater. Through this advisory mandate for NamWater (Windhoek, Namibia), Taylor-DeJongh recommended the most suitable plan by which a desalination bulk water facility could be implemented and operated. The team began by doing a technical, economic and financial evaluation of the facility. Taylor-DeJongh also assisted NamWater in the selection of an appropriate public/private partnership model and a suitable contractor for the implementation and operation of the water supply plant. The project included assistance with bidding documents, pre-qualification and evaluation of bidders, and the selection of contractors. The project also included the drafting of contract documentation, and negotiation of agreements/contracts with the contractor selected. Another major task was raising financing for the plant followed by the provision of information seminars to gain the support and understanding of key organizations in the Namibian utility sector.
Muscat Water. Taylor-DeJongh was financial advisor to concession winners (Ogden and Galfar) for a US$800 million privatization and development project of an integrated wastewater treatment in the Muscat municipality. The project involved working closely with lenders, including local banks, coordinating with the Omani government, and the municipality. Taylor-DeJongh performed a detailed financial analysis of the proposed wastewater facility to advise our client in the bidding process. The firm developed a financial model to analyze the viability of the project and assess how different scenarios could affect the economics of the project. Taylor-DeJongh worked closely with the client to get the necessary financing for the project. The firm approached multilaterals and commercial lenders and negotiated the financing terms for the project. Currently, the project has been halted for political reasons.
Batu Hijau Project. Taylor-DeJongh was the financial advisor to the U.S. Ex-Im Bank as one of two primary lenders for the US$2 billion Batu Hijau copper and gold mine project and municipal support system. The firm managed the financial evaluation of project economics, analysis of the cost and revenue potential, financial models for proforma projections of revenues and ability to repay debt. Taylor-DeJongh also assisted in export credit negotiations, and in legal and commercial arrangements with the Indonesian Government. In addition to advising the U.S. Ex-Im Bank, the firm negotiated with Jexim (now JBIC) and KfW for the structuring of US$1 billion of debt. This deal created new criteria for collaboration among Jexim Bank, KfW and U.S. Ex-Im Bank. The project involved creation of entire municipal support system on an uninhabited island, including energy supply (180MW of power generation), water/wastewater treatment system for a new town of 2,000, a port, roads, and related infrastructure. The firm managed the entire financial evaluation of the project's economics, the detailed analysis of the cost and revenue potential, the financial models for proforma projections of revenues and ability to repay debt. TDJ also provided assistance in all negotiations with sponsors for their legal and commercial arrangements with Indonesian Government; extensive and detailed negotiations with the official government financing institutions of Japan and Germany for the detailed structuring of US$1 billion of debt from U.S., Japan, and Germany.
www.taylor-dejongh.com
