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Cost Saving Proposition

Informed financing is key to reducing unexpected add-on costs to capital raising. This prerequisite is even more pronounced when capital access is sought from lower cost private debt capital markets. Ratings process, structuring versatility, pricing and distribution method may suddenly overwhelm, especially in less liquid emerging Asia debt markets.

cfoFinance presents a service opportunity for corporates and governments to heighten relative bargaining strength in complex, sophisticated and multi-million size capital raising negotiations. With cfoFinance, a CFO premier service is offered for benchmark setting consulting engagements in leverage mediation advisory and/or leverage mediation for preselected assets, projects, corporates, business trusts and/or governments in Asia.

Service Panel | +603 2092 9335 Hotline

Acting independently and separately from WK Gahn, the Panel comprises certified practising and/or chartered accountants with seasoned, award-winning and brand recognised professional success in Investment and Leveraged Finance. They operate under auspices of the Gahn Consulting Group (GCG).

Corporate Sponsorship

From time to time, WK Gahn sponsors cfoFinance activities under its accountable dealing initiative for markets. Legal compliance guides these discretionary sponsorships.

Featured Case Studies

Case Study - Title

Case Study - Challenge

GCG received a request by a Malaysian to raise development financing for commodity estates ranging from coal, oil palm to forestry sited in Indonesia and Malaysia. A partnership was represented as closed in-principle between the Malaysian and his sole asset-contributing Indonesian partner.

Case Study - Discovery

GCG’s concept pitch premised on Take or Pay offtake financing was well received by both Malaysian and Indonesian partners. Off-take interests in coal and palm oil were term-negotiated with global Buyers of BBB1/+ international ratings or higher; but it surfaced equity-sharing in the joint venture was pending, contrary to representation made to GCG. This unduly stretched out joint venture negotiations.

Case Study - Impact

To save the deal, GCG mediated and proposed a Starting plus Earned Equity structure for the Malaysian; but supported final decision by the Indonesian to sell equity in his estates to global brand operators when he revealed that holding on to the estates stretched finances. Info memo commissioned by the Indonesian and prepared by GCG for financiers was used by the Indonesian to successfully close equity sale to a new suitor instead. An undisclosed, but looming liquidity crisis for the Indonesian was pre-empted, while integrity of conscience and goodwill was upheld.

Global Buyer Brought To Wings, Seller Unprepared

Case Study - Challenge

GCG was requested to look into development financing of a 20% semi-planted oil palm estate in Indonesia. There was plantation business permit on the estate (IUP), but land cultivation rights title (HGU) was pending. The exchange-listed Client had an existing government soft loan, and also, sought AIM listing on the London Stock Exchange earlier.

Case Study - Discovery

With IUP status on the estate and no identified cashflow, the only means to raise financing was to attach minimum crude palm oil (CPO) offtake to the estate. Through B2B connections, GCG brought to the table, A1/A+ internationally rated LC-backed purchasing by a global buyer for MYR1.6 billion CPO over 10 years. Our repeating caveat to the Client was that a bank guarantee may be required for pre-harvest finance.

Case Study - Impact

The buyer was a dominant market-maker in the global food chain and had its legal team already vetting terms of bankable CPO offtake prepared by GCG for signing. Regrettably, the Client did not produce nor deliver least volume test CPO quantities for consideration by the global buyer on 2 occasions. In the interest of sanctity of our ongoing worldwide partner relationships and an unprepared Client; GCG called off the CPO offtake and offtake financing arrangement. For the considerable work done, the Client paid a nominal sum; abortment notwithstanding.

Separate Service Or Turnkey Consultation

Upon term service engagement, WK Gahn-sponsored panel consultants will act as contract chief financial officers (CFO) of their clients on separate service or turnkey basis. Scope of engagement with reference to leverage mediation advice and/or leverage mediation itself, may include, and is not limited to the following:

    1. Credit Pre-Screening & Credit Advocacy   
Strong understanding of credit assessment, structural credit enhancement techniques and rating methodologies is essential to pre-empting time and cost wastage on a debt capital raising exercise. Our panel’s seasoned experience in credit pre-screening and global best rating practices positions them for effective and efficient credit advocacy with rating agencies and/or financial institutions.
    2. Structuring, Due Diligence, Pricing & Distribution   
Partnering with a CFO service panel consisting of CPA/CA qualified, and seasoned Investment & Leveraged Finance professionals naturally heightens a client’s relative negotiating position in relation to its advisors, rating agents, regulators, financial intermediaries and/or investors. Informed financing will evidently lower the advisory costs for the entire debt transactional exercise; whether it concerns structuring, due diligence, pricing and/or distribution.
    3. Credit Investor Relations
   Fundamental to ensuring overall cost efficiency of capital, credit investor relations emphasises cash over accounting metrics, transactional structure, rating outlook and market liquidity.

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