Noveo Finance

Skilled hedge advisors with deep expertise in financial risk management are key to enhancing financial stability and ensuring businesses secure favourable outcomes in structured financing. Noveo Finance has been a dominant force in this specialised field for the last 15 years, providing clients with hedging solutions that mitigate the impact of interest rate fluctuations, foreign exchange risks and inflation volatility.

An independent consultancy firm specialising in financial risk management, Noveo Finance excels at advising clients on structured financing transactions, particularly in infrastructure projects that require substantial capital and long-term financial planning. Many of these come with extended financing terms, where interest rate sensitivity is a key factor. It works closely with project sponsors, utilities, independent power producers and financial investors to ensure that projects are structured to mitigate financial risks, shield against market fluctuations and maintain stability.

"We provide tailored solutions built on our expertise, ensuring each client receives an optimised strategy suited to their specific project," says Oscar Fernandez España, managing partner.

These strategies safeguard infrastructure investments by addressing financial uncertainties that arise from extended financing structures. Even minor interest rate fluctuations can significantly impact financial outcomes.

For instance, a five-year facility carries a different risk profile than a 30-year loan, where prolonged exposure heightens financial vulnerabilities. To address this, the company structures hedging strategies that optimise financing conditions and allow sponsors to secure financial terms early, minimising exposure during negotiations.

Noveo Finance strengthens financial stability by implementing pre-hedging strategies, reducing the risks posed by interest rate and foreign exchange volatility throughout the extended timeline of project finance transactions. This ensures investments remain financially sound despite shifting market conditions.

Clients also approach the company for greater transparency in derivative pricing, particularly regarding cross-value adjustments, which include counterparty credit risk and funding value adjustments that influence pricing structures and transaction costs. These highly technical adjustments make expert monitoring critical to maintaining fair pricing and securing the best financial results. This is necessary for refinancing transactions, where restructuring existing hedging strategies can significantly optimise financial efficiency. It helps clients navigate these complexities, ensuring optimal pricing structures and financial outcomes.

“A lot of the transactions we are working on aim at hedging risks before reaching financial close. Sponsors want to secure parameters early in the process, and that’s where we step in,” says Morand Drouot, founding partner.

It also advises on hedging strategies while strengthening financial oversight through treasury management solutions, equipping businesses with the tools to monitor transactions and effectively manage risk. A key offering is Noveo Copilot, a treasury management platform service that allows companies to monitor cash flows, analyse financial portfolios and perform risk simulations while simplifying decision-making. The company services and integrates the platform for its clients and operates their portfolios directly, ensuring seamless management without the need for in-house implementation.

Noveo Finance excels at handling high-value transactions, ensuring precise financial restructuring and risk management. This was evident in a one-billion-euro refinancing project in the fibre industry, where it restructured existing swaps from the previous financing facility and integrated them into the new one, improving financial efficiency. The approach structured the transfer of hedges, significantly increasing cash generation for shareholders, resulting in a seamless transition and maximising financial outcomes.

The same level of accuracy and excellence is demonstrated in every transaction, with financial structures tailored to business needs and long-term goals. Clients rely on the company to align financial conditions with market realities instead of applying standard risk models.

Noveo Finance has cemented its position in structured finance by transforming risk management into a strategic advantage. It stabilises funding conditions, manages risk and gives businesses the stability and control necessary to navigate complicated transactions. The company's expertise and extensive market understanding form the bedrock of a sound financial foundation that empowers clients to achieve long-term success.