Shareholder value derived from clean energy
Fortune Hydro doesn't compromise on profitability. Our projects deliver a high return on investment, with IRR scores in excess of 20%. We have exclusive access to the best projects pipeline in-sector, and can select projects to ensure healthy returns and positive ecological impact. Fortune Hydro raises capital through different classes of shares, convertibles, bonds, and traditional debt financing. We follow the principle that profits arrive through delivering on ESG commitments, achieving good outcomes for investors, shareholders, and society.
INVESTMENT PROCESS
ACQUISITION AND FUNDING
The company rolls out the investment, commits funds, and completes the construction.
BUSINESS CASE REVIEW
The business case is reviewed to find whether it meets the investment criteria. An identifiable off-taker funding plan is also developed with the inclusion of local partners.
STRATEGIC PLANNING
AND DEAL PREPARATION
Activities performed under this phase are:
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Site visit
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Project development to investment grade
-
Investment preparation
-
Preparation of exclusivity agreement
PROJECT APPROVAL
Activities performed under this phase are:
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Preliminary investment decision
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Detailed planning
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Detailed due diligence
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Finance roadshow
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Investment commitment
INVESTMENT APPROVAL
The new company acquires the project, builds & operates the assets, and secures off-take contracts.
Fortune Hydro asks its clients to enter into 3-month exclusivity contracts to optimize the technical design and fully finance the project (including up to 85% equity)
VOITH BUSINESS UNIT PROPOSAL
VOITH proposes an investment project supported by a favourable 3rd party report.
INVESTMENT CRITERIA
PROJECT SIZE
REPORT
IRR
LOCAL PARTNERS OWNERSHIP
FORTUNE HYDRO'S OWNERSHIP
AT LEAST 10 MW
Total size of the project
FAVOURABLE
Achieve favorable hydrology and technical 3rd party reports
IRR >10%; RoE > 15%
Business case with IRR of >10% (ready to build)
15% EQUITY
Local partners must own at least 15% equity in the business
51% TO 85%
51% to 85% of the ownership with Fortune Hydro
SOURCES OF SHAREHOLDERS &
INVESTORS’ PAYOUT
Cash-rich and asset-heavy investments provide a stable source of liquidity for debt service and dividend payments. Additionally, payments to investors will be secured through the following sources:
NET PROFIT
Net profit margin generated from the operating entities. Free cash flow
80% avg EBITDA margin
LONG-TERM
DEBT
Pay portion of equity with
long-term debt
REFINANCING
OF EQUITY
Funds generated from refinancing of equity through long-term debt or transfer to debt fund after 1 to 2 years of successful operations.
SALE AND
LEASE BACK
Funds generated from the sale and lease back of operating assets
IPO
Funds generated through an IPO at the TopCo level or listing of operating entities
SHAREHOLDER RETURNS
SWISS FRANK (CHF) DENOMINATED
€200 Million
The total investment amount of up to €1 billion will be raised over a period of 5 years, 2023 to 2027 (target of €200 per year)
3-5%
Annuities payable to the investors at regular intervals
€1 BILLION
Fortune Hydro plans to raise an investment of €1 billion from the investors over a period of 5 years. The funds raised will be used for engineering, development, and overall operations of the projects under portfolio. Average investment per asset will range from €25 to €100 million with a project lifecycle of over 25 years, minimum.
15%
Target return (ROE) to be achieved by the company for the investors (including annuities). Minimum ROI to be achieved is 10%.
SME-X, LSE-SPAC
Generating secondary market for tradable shares, convertible bonds and notes.
Tier One Auditors
(Fortune Hydro's auditors)