EQUITY

While Renco realizes that Promoters’ financial commitment to the project is the most critical, very good projects languish or get delayed while implementing due to back up support in the equity from financial or strategic partners/investors. Renco and LTCC shall address this issue as it relates to projects identified for comprehensive relationships through the following:

1. With the agreed structuring, arrive at the maximum possible contribution from promoters and their associates; agree on the deficit to be bridged from non-promoter source.



2. Arrange for evaluation of the CER prospects from the project and establish the CERs that could possibly be taken for securitisation over the next say, 5 years.



3. Arrange buyers for the CERs and capture the proceeds to supplement promoter’s equity in the project. Renco’s proposed fund targeting the RE/EE sector viz Indian Green Energy Fund(IGEF) shall also be a participant in such securitisation transactions to fill in the last stage equity.



4. Should the project be of a large size necessitating the involvement of a financial/strategic partner to bridge equity gap after contributions from the promoters and the securitization of CERs, LTCC would facilitate the identification of such financial/strategic partner to complete the ‘financial closure’.