Thearke is a...
Thearke Corp is a fintech startup focused on weather derivatives and weather insurance for the renewable energy sector. Thearke has collaborated with A-rated underwriters to develop weather derivatives and insurance that materially improve the debt structure for renewable energy project lenders whilst increasing margins for the project sponsors.
When put in place by the project sponsors, our carefully customized derivatives materially improve cash flows available for debt service enabling an optimized debt structure that results in higher margins for the project sponsors whilst making the project safer for the debt provider. We are nurturing partnerships with banks that are seeking to provide a more attractive debt offering to their customers.
Our weather derivatives work by enabling payouts whenever wind/solar resources are below the expected thresholds. Due to these payouts, the cash flows available for debt service are always materially above income projections at P80 and P90 and consequently, the DSCR is much higher. This highly improved DSCR at P80 and P90 enables better debt structuring options for the sponsors including higher gearing, better interest rates or optimized debt tenors.
These changes improve the return on equity for the power projects since the costs of the derivatives are far outweighed by the consequent gains in returns. The result is much better risk mitigation and DSCR coverage, an optimized debt structure for the bank, and improved margins for the sponsors.