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Structured Finance

Our structured finance team offers a wide range of services to the providers of senior debt to structured financed projects worldwide, such as providing independent insurance advice, commentary on the allocation of risk under principal contracts, and more.

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Structured finance is a generic term for a type of limited recourse finance or non-recourse finance, and includes project finance and securitisations. Such structures are commonly utilised in public private partnerships (PPP).

The structured finance team at Marsh acts as the independent insurance adviser to the providers of senior debt to structured financed projects worldwide.

We have global experience in all sectors, including:

  • Energy (upstream/downstream and onshore/offshore, including drill ships and semi-subs).
  • Power, including renewables (hydro, coal, gas, solar, and wind).
  • Metals and mining.
  • General infrastructure (roads, bridges, tunnels, hospitals, satellites, airports, sea ports/container terminals, military, and general accommodation).

Reviewing and commenting on the allocation of risk under the principal contracts is part of our role, as is the following:

  • Contributing to the risk review of the project.
  • Reviewing and commenting on the proposed risk treatment/management processes and insurance/reinsurance programme to protect assets, liabilities, revenues, latent defects, force majeure, technology, political issues, and contractual obligations.
  • Ensuring insurance procurement regulatory compliance.
  • Commenting on the current and future availability of insurance and cost assumptions/contingencies included within the financial model.
  • Drafting minimum insurance requirements and insuring clauses within the loan agreement (including the typical suite of lender endorsements).
  • Providing insurer security ratings.
  • Negotiating on the behalf of lenders.

We provide our advice in a timely manner and work with lenders and their other advisers (financial, technical, and legal) to help a project reach financial close. Thereafter, we advise on the transition from construction to operations and continue to monitor and audit the insurances on an annual basis (or otherwise as required), to ensure compliance with the loan agreement and that the interests of the lenders continue to be protected for the life of the loan.