BENEFITING LANDOWNERS

Our approach is designed to be collaborative and transparent with the core principle of building healthy long term relationships with landowners. Our financing methodology is flexible with the aim to align interests and enable landowners to realise the full or partial value from the long term lease revenues for their own and immediate benefit.
GreenCap’s financing solutions will deliver the following key benefits to land owners:

  • Realising immediate additional funding capacity against non-farming related revenue.
  • Funding can be utilized by the land owner for any activity.
  • No look through to farming income.
  • No impact on land rights or existing notarial lease agreement.
  • Deliver an additional tax shield against lease revenues.
  • Easy process with standard agreements that could be implemented quickly.
  • No change to the relationship between the lessee and the lessor.
  • Greencap is supported by a strong established financial partner.

Land owners will have the flexibility to structure the amount (percentage of future lease revenues) of financing according to their current funding or financial planning requirements.

HOW WILL I BE AFFECTED?

There would be no impact on any landowner’s farming operations nor the ownership of its land. The only impact on the landowner is directly related to the lease agreement with the renewable energy project and the lease revenues received. In some cases GreenCap could make an offer for the land if that is requested as an option.

NO IMPACT ON EXISTING LEASE AGREEMENT

GreenCap’s financing is designed to have no impact on the lease agreement between the lessee (landowner) and the renewable energy project.
GreenCap will only take security over the lease revenues received by the landowner, all the other rights and obligations stipulated in the lease agreement remains the obligation of the landowner.

WOULD ALL LEASE AGREEMENTS QUALIFY?

GreenCap would currently consider providing financing to land owners who have notarial lease agreement with renewable energy projects that are already in operation or where construction has already started.
Lease revenues from all types of renewable energy technologies, including Solar PV, Solar CSP, Wind, Hydro and Biomass would qualify for financing.

TYPES OF LEASE AGREEMENTS THAT QUALIFY

GreenCap understands that there are a number of different lease revenue structures that are utilized in the lease agreements, which could include:

  • Lease payments based on installed MWs
  • Lease payments based on land use
  • Lease payments based on revenue earned by the renewable energy projects
  • A combination of any of the above

GreenCap would provide financing on all different types of lease revenues.
GreenCap’s credit assessment of the lease revenue risk is a key factor in structuring the financing solution for each land owner.

INFORMATION REQUIRED FROM LANDOWNERS

The land owner would need to provide the following information to GreenCap:

  • Notarial lease agreement with the renewable energy project
  • Forecasted lease revenues over the remainder of the notarial lease period
  • Property ownership structure

Subject to the terms of the notarial lease agreement, GreenCap may require additional information from the land owner.

WHAT DOCUMENTS WILL LANDOWNERS SIGN?

The landowner and GreenCap would sign a long term financing and/or lease agreement and a cession of security over the lease revenues that will be paid to the landowner by the renewable energy project.
There will be no requirement for the renewable energy project company to enter into any agreements.