CASE STUDY : HEDGE ADVISORY

Context
A French renewable energy player wants to refinance its wind farm. The wind farm is financed by several lending banks and the interest rate hedging is ensured by several swaps concluded with different banks. ESTER is asked to assist with the management of interest rate risk and hedges in the context of the refinancing.
Challenges associated with the mission
  • Control of transaction's execution conditions
  • Optimisation of the execution process to limit costs and risks
  • Optimisation of the documentation to keep the parties in balance and to limit future risks
Distinguishing features
  • Deep knowledge of the market
  • Mission to improve current market standards
  • Combining short-term vision and long-term client interest
What our clients say about us

Chief Financial Officer

Renewable Energies company

For the project finance side of our job, we have chosen to strengthen our interest rates and foreign exchange risk management by working with ESTER. Reactive, efficient, easily accessible, ESTER’s consultants display a full mastery of the risk management techniques, sharp pricing capabilities, and a good sense of risk. The interaction with our teams, our legal advisor and our banking partners is very professional and ESTER keeps on coming up with new ideas to help cutting the costs efficiently. I do recommend ESTER wholeheartedly.

Director

Infrastructure Fund

In 2017, we asked ESTER to advise us on the interest rates risk management of a project in the field of telecom infrastructures. ESTER assisted us in the structuring of the hedge in a way that was well adapted to these specificities, with the dual purpose to limiting the risks carried by the project and to controlling transaction costs related to the adjustments of the hedges. Rigorous, technical, mindful of the immediate and future consequences of the different alternatives for the project, ESTER contributed in an efficient way to the discussions with our partner banks, giving us a good sense on the different optimization drivers. 

Finance & Accounting Manager

Company under LBO

In the course of the debt coverage, we asked ESTER for assistance in the accounting reporting of our derivatives. Their consultants provided us with rigorous reporting. They proved to be reliable, very didactic on their methods, transparent on the assumptions, eager to help us improve the transactions’ executions. Furthermore, they were attentive to our needs and offered innovative solutions. ESTER is a trustworthy partner that we strongly recommend.

ESTER S.A.S – Société Anonyme Simplifiée au capital social de 60 000 euros

Conseiller en Investissements Financiers immatriculé à l’Orias sous le numéro 13000667, www.orias.fr, et membre de la CNCIF.