What is DPI®
Debt Protection Insurance (DPI®) is a competitive solution that provides an opportunity for a third party to guarantee the operational risk of a process. It protects the total project investment against the reduction of revenues caused by an unexpected drop in operational hours.
DPI® transfers this operational risk to an, a A-rated third party and provides comprehensive coverage of up to $50M per project. With well defined insured events, a single premium and non-cancellable 10-year term, DPI® provide a project developer with unrivalled financial protection.
A pre-accreditation desktop service is available through Allied Project Service that enables a project developer to understand if their project is ready for financing with the additional support provided by DPI®.
Allied also provides direct access to lenders through their pre-accreditation service.
Starting the DPI® Process
Prepare your Project for due diligence
Contact us to discuss your project or technology requirements
Pre Accreditation Service
Use our pre-accredition service to carry out a Health Check on your project.
Approval for your Project
Obtain DPI® approval and a term sheet.
Frequently Asked Questions
Q1: What is Debt Protection Insurance (DPI®)?
Debt Protection Insurance (DPI®) is a policy of insurance issued by an A-rated insurer that guarantees the uncertainties of process availability subject to an agreed process of due diligence.
Q2: What do you get from a DPI® policy?
1. A 10-year, non-cancellable policy Issued by an A-rated insurer
2. Up to USD50m cover
3. Competitive terms
Q3. What are the principal benefits of DPI®
1. The ability to insure pre-agreed expected revenue to support initial financing, refinancing and the financing of retrofits.
2. Access to a broader lender base.
3. An enhanced project credit rating.
4. Lower debt cost and/or an increased debt to equity ratio
5. It provides lenders with the security of guaranteeing their Debt Service Coverage Ratio (DSCR).
6. Reduced operational and maintenance costs
Q4. Who is DPI® for;
Debt Protection Insurance is purchased by the Project Owner but also provides benefit to both debt and equity providers.
Q5. Who should be interested in DPI® ?
1. Any project developers with a manufacturing process, Renewable Energy, Energy and Power, Biofuels, Plastic to Fuel.
2. Equity and Debt providers
3. Infrastructure funds
4. Insurance Brokers and Professional Advisors
Q6. Can I buy Debt Protection Insurance (DPI®) through my insurance broker?YES! Contact your insurance broker to request a quote.
Q7: Who carries out the due-diligence?
Due-diligence is undertaken by Allied Project Services Ltd (Allied) who are exclusively appointed to carry out due diligence on behalf of the insurer
Q8: Why is the due-diligence process for Debt Protection Insurance (DPI®) exclusive to Allied?
Allieds' team were involved in discussions and have supported this insurance product for many years. The agreed due diligence process proposed by Allied was agreed and accepted by the insurance underwriters as the only procedure that enables them to adequately assess risk.
Q9: I have already engaged consultants to carry out technology and project feasibility reports, can I use these?
YES! But, underwriters require Allied to validate these and issue their own report to gain access to Debt Protection Insurance (DPI®). Their due diligence will take into consideration any validated information and evidence used in your own consultants' reports that would expedite completion of the final report.
Q10: How much does the due-diligence cost and how long does it take?
The cost and the period of required due-diligence will depend on the maturity of the project and/or the technology. For further information visit Allieds' web site
Q11: Will your due-diligence reduce the need for any other due-diligence requirements and insurances?
Due diligence is required by all the parties involved in a project, including the contractors for project delivery, operations and management contractor, equity and debt providers, according to their individual requirements. However, we strive to bring added value to our process and work with all parties to integrate, as far as possible, the due-diligence carried out.
Debt Protection Insurance (DPI®) DOES NOT replace any other insurance that may be required. For further information and details please contact us or your own insurance broker.
We are always pleased to answer any other questions which are not shown here. Contact us for more information
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