Information for ADB APCF sellers
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Our aim is to represent your project in the best possible light, truthfully and accurately, in order to extract the most value for your CERs
First, we will compile information about your company and the project – to create the term sheet and to help us complete due diligence. Much of the information, such as establishing your price expectations, will be gathered during conversations between you, TFS and ADB CMI (as appropriate). We will require the following documents in electronic or hard copy, if available:
- Project information note
- Project design document, validated if possible
- Host country approval letter
- Proposed delivery schedule
We will also require
- A completed CDM project information form (which we will provide), giving details of your project, such as the current construction status and CERs already sold
- Financial information – recent audited annual report and financial statements, ratings information and available information on the parent company and subsidiaries.
- Background information – business profile and position within the local market, company history, company management, and organisational and ownership structure.
- A signed mandate giving us permission to market the project to buyers, and a signed confidentiality agreement.
Once we’ve drafted the term sheet, we will return it to you for your comments and revisions. Once you have agreed that it represents your requirements accurately, we will issue it to our clients. We will never issue a term sheet for your project without your permission.
The term sheet will usually be left with buyers for their consideration for seven days, during which time we will work with them to answer questions and encourage their interest. Often buyers will wish to make some amendments to the term sheet to reflect their own requirements – the buyer and seller will negotiate an agreement that suits both parties. The TFS diagram below indicates time required for this process.
TFS and its associated companies will act as name-passing broker only and will not stand as principal to the trade.
- Completing the Agreement
TFS will run the contracting process from negotiation of the term sheet through to the successful completion of the Emissions Reduction Purchase Agreement (ERPA). We have extensive experience of a wide variety of contracts, and draw on our relationships with experienced lawyers in the CDM market, who we keep on retainer for this purpose. We expect ERPAs to be successfully signed within four to six weeks of signing the term sheet. - Implementing the Contract
TFS believes its duty as broker is not complete until obligations under the contracts it negotiates are fulfilled. As most contracts run for a number of years, this extends the role of TFS beyond contract signature, up to the final delivery. As such, TFS will work with both buyer and seller to ensure all deliveries and payments are successfully made each year, and will work to resolve any problems.