CognitiveSeven developed the project’s financial model and assisted throughout the capital raising process for this transaction involving over $350 million of capital, including $175 million in debt financing from the CIB.
Benefit to Client
Client Challenge
CognitiveSeven Role
Benefit to Client
Benefit to Client
Client Challenge
CognitiveSeven Role
- The clients, Lulu Island Energy Company (LIEC) and Corix Infrastructure Inc. (Corix), required long-term financing to pursue a district energy expansion in Richmond, British Columbia, Canada.
- Clients required the development of a bankable financial model tailored to the project economics and evolving project contracts.
- Collected and reviewed all relevant demand, revenue, and cost data from clients and technical consultants.
- Redeveloped the existing project scoping model into a stable, adaptable, long-term financial model catered specifically to the client and lender needs.
- Advised the clients throughout the negotiation process on the project and loan agreement terms.
- Reviewed and provided comments on the project and loan agreement documents.
- Modified the financial model as negotiations progressed in response to evolving commercial and financial terms.
- Performed sensitivity analysis to assess/quantify the risk profile of the project.
- CognitiveSeven’s financial model was relied on to support negotiations and achieve financial close between Lulu Island Energy Company (LIEC), the Canada Infrastructure Bank (CIB), and Corix Infrastructure Inc. (Corix) on a district energy expansion project in the City of Richmond, British Columbia.
- Under the agreement, over $350 million of capital will be provided, with $175 million in debt financing from the CIB for the LIEC City Centre District Energy Utility project.
- The financing will enable expansion to more than 170 new residential and mixed-use commercial development sites in the area by 2050, using low-carbon heat recovered from the regional sewer system. The amount of connected space to the district energy system will increase 10-fold by 50 million square feet.