Investment in the Sugar Refinery; A loan for construction of the factory.
Investments in the Sugar refinery have supplied hundred of thousands score liters of ethanol to oil marketing companies (OMCs) till October 22 of the 2018–19 season (October-September) & helped them achieve 23.2% blending with petrol, according to industry data.
For many decades, global investment in the Sugar Refinery industries has shown steady growth, occasionally interrupted by economic crises. An industry with more than a century of history has undergone a radical transformation as a result of previous industrial revolutions. Today it is undergoing new changes as a result of the introduction of digital technology know how.
The implementation of global Sugar Refinery is largely welcoming changes such as big data processing, real-time monitoring, smart plants, custom-made food products.
Alongside, the entire world is facing some constraints and challenges such as environmental degradation, scarcity of natural resources, raw materials, and demographic changes that are affecting the Sugar Mill industry. At the same time, competition in the global market is intensifying, which creates additional problems for business and that requires an immediate increase in efficiency and competitiveness.
The Sugar Industry remains one of the most energy and capital intensive industries in the modern economy.
World’s Sugar business: before and after the COVID-19
The Covid-19 pandemic has had a negative impact on Sugar consumption, putting numerous Sugar Industries in a difficult position.
The state of uncertainty calls for caution on the part of investors and lenders, which along with a commitment to innovative technologies will make investments in the Sugar industry more reliable.
Havelet Finance Limited offers a full range of investment services in the Sugar Refinery Industry including loan for the construction of the factory. We are ready to attract bank loans, as well as funds from private investors and other sources of funds for your project.
Our range of services includes:
• Investment financing.
• Investment engineering and consulting.
• Long-term business lending.
• Project finance schemes (PF).
• Financial modeling.
• Credit guarantees.
Contact us to day to learn more on how to get started.
Investment in the Sugar Refinery Industry was also booming, supported by global infrastructure projects.
Investment in the African Sugar Refinery industry has remained low in recent years, which is why most countries are Sugar Importers. It comes to local customers mainly from Sugar Refinery in neighboring Europe and Asia.
What investors and lenders should consider Prior investing on Sugar Refinery Industries.
The sugar sector is actively developing and strives to become a self-organizing sector in a smart ecosystem like other industries,
Linear processes and isolated functions are transformed into interconnected clusters that exchange information in real time. The main driving forces behind this change are digitalization and information technology.
This applies to all participants in the value chain. However, the transformation of the industry towards a smart ecosystem will be gradual. The transition to the digital economy has just begun, and for now, businesses with different value creation models must coexist.
Project finance in the construction of sugar refineries
Project finance has been widely and successfully used to fund investment in refineries, petrochemicals and other downstream projects.
Project finance allows companies to raise significant financial resources without collateral, using the project’s future cash flows to repay debt. This is a highly complex model based on a multilateral contractual structure and multiple guarantee and security instruments.
Features of project finance in the construction of sugar refineries
The complexity of raising funds and the numerous requirements of creditors.
• A rigorous financing process. That could disrupt the company’s plans.
• A Bourgeois collateral requirements and guarantees which can be provided by the company’s highly liquid assets.
• The need to pay part of the profits to pay interest which reduces the share of funds allocated to finance the needs of expanding sugar production.
• The probability of bankruptcy in case of untimely repayment of debt.
• Loss of control over the business when issuing shares
Investment loans for sugar refineries
An investment loan is a form of credit with a very wide range of uses. Its objective is to finance, over the medium and long-term, long-term investments in financing capital-intensive investment projects, such as the construction / modernization of sugar factories, warehouses and other facilities.
An investment loan is one of the most frequently used ways for companies to obtain financing today. Almost all such loans are issued by commercial banks that manage the company’s current accounts and also provide other financial services to the company. Often these are financial institutions or banking syndicates that have a high lending capacity in accordance with applicable banking laws and regulations.
Such loans are issued by commercial banks that manage the company’s current accounts and also provide other financial services to the company. Often these are financial institutions or banking syndicates that have a high lending capacity in accordance with applicable banking laws and regulations.
Havelet Finance Limited would require the following for funding and reaching an MOU for sugar refinery.
• Feasibility study of the project.
• Business plan including funding requirements.
• Detailed financial plan with payment schedule.
• Company Registration documents etc
If you are looking out to establish a Sugar factory or refinery, a Tens and Thousands of Dollars/ Euros are required or even to upgrade/lease equipment.