Instruments

COFIDES financial instruments are tailored to the needs of each project as regards financial conditions, duration and the guarantees that need to be provided. COFIDES can finance the following project categories:

Those with a Project Finance structure
Cash flow from the international operation or assets of the project itself as the main guarantee
Corporate guarantee from the developer

COFIDES offers the following financial instruments:

1. Equity investment

Direct or indirect holdings in companies created abroad are always minority, transitory and with a repurchase agreement with the Spanish investor. COFIDES does not participate in the daily management of the project; this is a task undertaken by developers. The following modalities are available:

Capital-Interst

Equity investment in a project company or vehicle whose divestment price is a single amount equivalent to the total capitalization plus capitalization of interest.

Capital-Limited

Equity investment in a project company or vehicle whose divesment price is within a certais range.

Capital at open price

Equity investment in a project company or vehicle whose price depends on the evolution of the project itself.

2. Loans

With the option of granting the loan either to the project company abroad or to the Spanish investor. The terms are related to the expected return period for the project, normally between 3 and 10 years and generous grace periods during the first years of the project.

2.1 Senior loans

Ordinary

Loan with a fixed margin over the reference interest rate.

Co-investment

Loan that includes an additional remuneration component in its interest rate linked to the evolution of a certain variable of the financed business (for example, sales or EBITDA), or to an internationalization variable.

2.2 Junior loans

Lower ranking loan compared to other forms of credit.