Every blended finance transaction begins with a clear-eyed analysis of the risks involved and an honest assessment of who is best placed to bear them. Construction risk, demand risk, currency risk, regulatory risk, counterpart risk — each requires a tailored mitigation strategy and an appropriate allocation across the capital structure.
We map the full risk profile of a proposed water infrastructure transaction, identify the instruments available to mitigate or transfer each risk category — guarantees, first-loss facilities, political risk insurance, currency hedging mechanisms — and advise on the optimal combination for the specific project context. Our work on risk allocation is grounded in the standards and expectations of multilateral development banks and established impact investment funds, ensuring that the resulting structure will withstand rigorous due diligence.
Where first-loss coverage or concessional capital is required to attract private co-investment, we identify and engage the most appropriate providers — including development finance institutions, bilateral aid agencies, and philanthropic capital providers active in the LATAM water sector.

A well-designed capital structure matches the financial characteristics of each tranche — interest rate, tenor, currency, security, and return expectations — to the specific cash flow profile of the water infrastructure asset it is financing. Poor capital structuring is one of the most common causes of project failure in the infrastructure space, particularly in emerging markets where long-term local currency financing is scarce and regulatory risk is elevated.

We advise on the design of capital structures that are appropriate for the asset class, the jurisdiction, and the investor base. This includes determining the optimal debt-to-equity ratio; selecting the most suitable debt instruments (project bonds, senior loans, mezzanine debt, subordinated loans, or revolving credit facilities); designing equity structures that protect operational control while delivering investor returns; and advising on currency exposure and hedging strategy.

Where the project involves a blended structure, we model the interaction between concessional and commercial tranches carefully — ensuring that concessional resources genuinely catalyse private capital mobilisation rather than displacing it.

Complex water infrastructure transactions involve multiple parties — project sponsors, lenders, investors, public counterparts, regulatory bodies, and technical experts — each with distinct interests, information needs, and decision-making timelines. Without a clear governance framework, transactions stall, disputes arise, and the trust between parties erodes.
We design and implement transaction governance frameworks that establish clear roles and responsibilities for each party, define the information flows and reporting obligations that keep all stakeholders aligned, and create the decision-making mechanisms that allow the transaction to proceed efficiently from term sheet to financial close.
Our governance work draws on international best practice for infrastructure project finance, adapted to the specific legal and regulatory context of the relevant Latin American jurisdiction. We work closely with legal counsel to ensure that governance arrangements are reflected accurately in transaction documentation.

The period between term sheet and financial close is often the most demanding phase of any infrastructure transaction. Negotiations on pricing, security, covenants, and conditions precedent can be protracted; due diligence processes surface unexpected issues; and the competing interests of multiple parties must be managed simultaneously without losing momentum.
BGIV provides active support throughout the negotiation and closing process — preparing and reviewing term sheets, coordinating due diligence processes, advising on negotiating positions, and ensuring that the transaction documents accurately reflect the agreed commercial and financial terms. Where required, we engage directly with lender or investor representatives on behalf of the project sponsor.
Our goal at closing is not merely to get the deal done, but to ensure that the resulting documentation creates a sound foundation for the operational phase of the project — one that serves all parties well over the long term.