For owners of $500M+ capital projects
Bond financing for the projects that build nations.
Foundation Funding finances large energy, industrial, data center, hospitality and infrastructure projects through its own bond portfolio. Submit your project and we evaluate its capital stack, debt coverage and documentation to determine whether it qualifies for bond financing.
Minimum project size we consider
Energy, oil & gas, power, data centers, industrial, hospitality, resorts, casinos, infrastructure — plus others case by case
Monthly payments during the bond tenor
Outcomes
A comprehensive review, built to move your project to bond financing.
Know where your project stands
Every application receives a standardized 0-100 institutional readiness score showing how close the project is to qualifying for our bond financing.
Clean terms from the start
We screen existing term sheets and offers for upfront-fee traps, cross-default clauses and hidden equity kickers so your financing is built on sound terms.
A capital stack that holds
Senior debt, mezzanine and sponsor equity are sized and stress-tested so the bond structure fits the project's cash flows.
A clear path to qualification
You receive a prioritized list of open items, from data room documents to engineering and legal reports, needed to move to bond financing.
Readiness estimate
Is your project ready for bond financing?
A directional preview. Your application receives a full institutional review.
Bond financing vs. traditional
Lower cost of capital. More of your equity kept.
Qualifying projects are financed with investment-grade rated bonds issued at or near prevailing shorter-duration market rates.
| Foundation Funding bond model | Traditional bank loan | |
|---|---|---|
| Funding level | Up to 100% bond funding, based on loan-to-cost against completed value | Typically limited to 60-65% loan-to-cost |
| Funds due at closing | Interest, insurance and bond costs amortized into the bond's face value | Substantial upfront capital required |
| Monthly payments | Zero monthly payments during the bond tenor | Monthly debt service after the interest reserve runs out |
| Personal guarantees | Not required | Required |
| Equity dilution | Minimal, with waterfall and equity claw-back provisions | Significant, typically 35%+ of the sponsor's stake |
| Pre-development capital | Can be recapitalized with bond proceeds at closing | Tied up in the project until exit |
| Credit standing | Builds a track record servicing investment-grade rated bonds | Limited credit enhancement |
| Covenants | No restrictive covenants or acceleration events | Restrictive covenants limit operating flexibility |
Example
Five-star resort and luxury condominiums
- Stabilized value
- $1.2 billion
- Construction period
- 30 months
- Bond / loan duration
- 42 months
due at closing vs. $314M with a bank loan
less in additional costs than a bank loan
| Bond financing | Bank loan | |
|---|---|---|
| Project capital required | $850,000,000 | $850,000,000 |
| Sponsor equity | $26,000,000 | $26,000,000 |
| Funds due at closing | $0 | $314,000,000 |
| Project proceeds | $824,000,000 | $510,000,000 (60% LTC) |
| Interest reserve | $187,423,075 | $108,375,000 (30 months) |
| Interest earned on sinking fund | ($18,764,934) | — |
| Other bond costs | $127,929,239 | — |
| Monthly payments after reserve | $0 | $53,561,875 |
| Equity payments to investors | $6,064,769 | $107,031,563 |
| Investment loss of CapEx | $0 | $49,455,000 |
| Due diligence costs | $1,450,000 | $1,250,000 |
| Total additional costs | $7,514,769 | $211,298,438 |
| Total project costs | $1,128,102,149 | $1,143,673,438 |
Project capital covers land, hard and soft costs. Other bond costs include rating fees, underwriting, insurance and contingencies. Bank case assumes 50% equity participation and 4.5% interest. Illustrative only; figures supplied by the project sponsor and subject to change.
The process
From application to funding in 4-6 months on average
Larger and more complex projects can take longer. How quickly your team supplies the required data has the biggest effect on the timeline. Sponsors who can self-insure the project may shorten it by up to 90 days and reduce up-front due diligence and surety costs.
- 01 · 7-10 business days
Intake & initial evaluation
Viability, feasibility, profitability and risk, validated against market conditions.
- 02 · Upon approval
Engagement letter
A comprehensive engagement letter and a call with your team to answer questions.
- 03 · Weeks 1-3
Kick-off & data room
Weekly project calls; you upload your data room against a project-specific checklist.
- 04 · From ~day 30, 30-45 days
Third-party reports
Engineering, legal, insurance review and bond counsel.
- 05 · 30-60 days
Independent feasibility review
A 40-50 page project summary and reports reviewed by KPMG or PwC.
- 06 · 4-6 weeks
Bond & surety underwriting
Final underwriting by the designated bond underwriter and surety company.
- 07 · Final stage
Rating & issuance
Bonds rated by S&P or Moody's and sold to institutional bond funds; first funds distributed.
- Track record
$4B+ in private credit projects funded
Backed by our parent company's underwriting team, private credit since 2009, with 300+ years of collective experience.
Pricing
One application fee. A complete project review.
Application & Review
One-time- Application for Foundation Funding bond financing
- Comprehensive project review for bond qualification
- Institutional readiness score and capital stack sizing
- DSCR stress testing and term sheet screening
- Data room checklist, existing loan terms review and committee summary (PDF)
Questions