Understand the asset
Technical specification, condition, residual value, supplier warranties and an appropriate independent valuation inform the structure.
Acquisition finance and lease structures considered against the asset's operating role and useful life.
Equipment finance begins with the productive purpose of an asset. A factory machine, construction fleet, processing line or marine vessel generates value in a different way from the property that houses it. The funding arrangement needs to recognise how the equipment is procured, operated, insured, maintained and eventually replaced.
AFII's published equipment-finance practice has discussed industrial plant, energy equipment, mining systems, telecommunications and infrastructure machinery, including dry- and wet-lease concepts. Depending on asset type and location, a mandate may examine secured acquisition debt, a leasing solution, export credit support or refinancing. Published indicative rates and ratios are historical and cannot be treated as current quotes.
Each mandate needs a different balance of structure, commercial judgement and execution. These themes explain the practical issues that usually shape the work.
Technical specification, condition, residual value, supplier warranties and an appropriate independent valuation inform the structure.
Lease payments or debt service should be assessed in relation to the output, utilisation and operating cash generated by the business.
Insurance, maintenance, crew, licensing and end-of-term obligations differ by asset and by lease type. A marine or aviation lease should not be assumed to operate like an ordinary machinery loan.
Nothing replaces the review of contracts, financial information and the particular circumstances of the borrower, project or investment. Each engagement remains specific to the transaction, counterparties and jurisdiction involved.
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Uttar Pradesh, India
References are drawn from AFII’s published transaction directory. Some entries describe historical, proposed or confidential assignments; inclusion does not establish that every project reached financial close. Photographs are editorial illustrations, not authenticated project images.
Whether the discussion concerns a project, operating company or investment structure, we begin with what the business needs to achieve and what information is available.