Straight from the NAIF websiteDue DiligenceDetailed due...

Straight from the NAIF website

Due Diligence

Detailed due diligence can commence once the Board has completed its Strategic Assessment, and has decided that NAIF will continue investigating the project.

The proponent must submit and Investment Proposal in the format of a comprehensive information memorandum which includes but is not limited to:finalised and where appropriate, independently verified versions of the type of information identified for the strategic assessment stageindependent assessment of the public benefits of the projectcomprehensive audited financial modelindependent project technical risk assessmentindependent market expert reportsproject risk allocation analysisother independent expert reports, as requireddetailed environmental, social and related governance assessmentan Indigenous Engagement Strategysupporting private sector financing documentation (term sheets and commitment letters)The due diligence process will involve project, credit risk, environmental and social risk analysis.

NAIF will work collaboratively with a proponent and co-financiers to develop appropriate NAIF loan terms and conditions noting that the level of concessions provided by NAIF is to be the minimum required for the project to proceed.

NAIF will also consult with, as appropriate and required, relevant Commonwealth, State and Territory government stakeholders and conduct any relevant third party verification. Where an Investment Decision is greater than $100 million, NAIF will consult with Infrastructure Australia.

The Due Diligence Stage information will form the basis for a proponent to make its formal Investment Proposal to be submitted for consideration by the NAIF Board. Submission of the Investment Proposal is considered a formal application for NAIF financial assistance. Guideline on the format of an Investment Proposal is available here.


Investment Decision & Execution

During this stage, the NAIF Board will make a formal Investment Decision (being a decision to offer or not to offer financial assistance).

The formal Investment Decision will be subject to negotiation and completion of financing documentation and to nay specified conditions precedent to funding. If and once a decision is made, NAIF will work with a proponent to finalise the financial assistance arrangements including satisfaction of any conditions precedent.Refer to the NAIF Act 2016 and Investment Mandate for considerations of the NAIF Board in making an Investment Decision including a preference for a diversified portfolio.

The NAIF will not proceed with making an Investment Decision, and further consideration of an Investment Proposal will cease if at any time the relevant State or Territory Government provides written notification that financial assistance should not be provided to the project.

The responsible Commonwealth Minister will also consider the project and can submit a Rejection Notice if he or she determines that financial assistance should not be provided.

Bases for a Rejection Notice include where the assistance would be inconsistent with the objectives or policies of the Australian Government; or have adverse implications for security; or have adverse impact on Australia’s international reputation or foreign relations.

NAIF will notify a proponent and relevant stakeholders of the outcome of the Board’s Investment Decision.

Within 30 business days of the NAIF Board making an Investment Decision, NAIF will publish on the NAIF website relevant information about the transaction (subject to commercial confidentiality as required by Section 17(2) of the Investment Mandate).


This will hopefully sort out a few arguements on here...