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AIG Companies - Overview
Single Point of Contact - Project Finance Advisors
ONE SINGLE POINT
OF CONTACT FOR:
PROJECT FINANCE
DEBT & EQUITY FUNDING
SOURCES
TRADING
HEDGING
RISK FINANCE
ENVIRONMENTAL
INSURANCE
POLITICAL RISK
TECHNICAL SERVICES
STANDARD INSURANCE
AND MORE
AIG Global Energy - Project Finance Advisors
American International Group, Inc. (AIG) is the world’s leading international insurance and financial
services organization, with operations in approximately 130 countries and jurisdictions. AIG member
companies serve commercial, institutional and individual customers through the most extensive
worldwide property-casualty and life insurance networks of any insurer. In the United States, AIG
companies are the largest underwriters of commercial and industrial insurance and AIG American
General is a top-ranked life insurer. AIG’s global businesses also include financial services,
retirement services and asset management. AIG’s financial services businesses include aircraft
leasing, financial products, trading and market making. AIG’s growing global consumer finance
business is led in the Untied States by American General Finance. AIG also has one of the largest
U.S. retirement services businesses through AIG SunAmerica and AIG VALIC, and is a leader in
asset management for individual and institutional markets, with specialized investment management
capabilities in equities, fixed income, alternative investments and real estate.
Project Finance: AIG Global Energy’s Project Finance Advisors is in a position to
develop the optimal structure to achieve access to the financial markets if necessary.
Where the structure dictates, other areas of AIG such as AIG Global Investments
Corp., AIG Trading, Risk Finance, AIG Environmental Insurance, AIG Global
Trade & Political Risk Insurance Company, and Solomon Associates for technical
services, will be invited to participate, with the client’s consent.
Funding Sources: AIG Global Investment Group (“AIGGIG”) has the ability to
provide debt and/or equity for projects in various geographic locations and different
industry sectors worldwide. AIGGIG would conduct a separate due diligence to
determine an investment.
Trading/Hedging: The ability of AIG Financial Products Corp. to monetize certain
off-take agreements, create refinery margin hedging solutions, finance crude oil
supply, address liquidity issues, etc. has the potential to stabilize foreseeable cash
flow in a volatile market place.
Risk Finance:AIG Risk Finance can provide alternative ways to finance insurable
risks which, without such sophisticated financing mechanism, would be difficult to
insure.
Environmental Insurance: It has become more the norm for banks to have
consultants conduct environmental audits in the energy sector before granting a
loan. However, the degree of comfort derived from a third party consultant
providing this service on a fee basis is less comforting than having AIG
Environmental perform the evaluation and then writing a policy transferring the risk
away from a transaction.
Political Risk:Most lenders felt that if political risk insurance were available they
did not need it since the risk was assumed to be low. However, since the 1997 Latin
American crisis and the Asian meltdown, banks have decided that political risk is
necessary. AIG Global Trade & Political Risk Insurance Group provides political
risk insurance for projects, contractors, equity investors, financial institutions,
importers and exporters.
Technical Services: Technical evaluations have always been important but have
taken on new meaning since the collapse of Enron. Banks utilize loan-to-value and
debt coverage ratios to determine how much debt they are prepared to lend to a
particular project. Solomon Associates, an AIG company, can provide technical
evaluations, asset valuation, benchmarking, and operating & maintenance efficiency
optimization. Each of these are important to either establish value, improve cash
flow, or compare operations to peer group performance. These criteria not only
determine the amount of a loan but are also critical to lending committees to
determine if a loan will be granted.
For more information contact: Bob Percopo, Senior Vice President, AIG Global Energy 212-458-5994
175 Water Street, 29th Floor, New York, NY 10038 212-458-5907