BIID structures co-financing arrangements when the scale, risk profile or financial characteristics of a transaction call for the coordinated involvement of several partners. It establishes the structure of the financing arrangement, organises the complementary use of resources and ensures a coherent allocation of contributions, risks and responsibilities in line with the specific requirements of the project.
Each instrument is thus assigned a specific role within the overall balance of the operation.
Financial engineering based on the complementarity of resources
BIID puts together the financial instruments in line with the constraints actually identified: co-financing and syndication to spread the burden of significant funding requirements, concessional resources and blended finance to strengthen viability, guarantees or insurance to cover certain exposures, patient capital where the economic horizon so requires, or preparatory resources where the project’s maturity needs to be enhanced. Each instrument is thus assigned a specific role within the overall balance of the operation.
At the same time, the BIID facilitates coordination between partners whose mandates and operational capacities are complementary. It aligns their financial terms, commitment thresholds, due diligence requirements and acceptable risk levels, and then supports the consolidation of the financing structure until it meets the conditions for submission to the relevant authorities.
Where the project’s financial structure requires additional leverage, BIID structures the interplay between public, concessional and private resources or hedging mechanisms to facilitate the entry of other financial partners. The approach adopted remains that set out in BIID’s documents: seeking the most appropriate combination of resources, responsibilities and safeguards, rather than simply juxtaposing instruments without overall coherence.