Raising Natural Resources Debt Capital

Debt financing is a popular method of financing in the natural resources industry. Debt financing holds certain advantages over PE investment. It is often viewed as more cost effective than equity finance. As it does not involve share dilution the natural resources company is generally not hamstrung by restrictions negotiated or imposed by the PE investor. Furthermore debt financing encourages risk diversity. Risk attached to debt issued by a natural resources company is reduced when that company operates or is involved in numerous projects.