Project Finance Overview
Unleash Your Project's Potential with World-Class Finance Solutions.
Fund Experts isn't your average project finance company. We deliver innovative,
customized solutions on a global scale, backed by unwavering
commitment to your success. Our seasoned team (with
over 20 years of expertise!) boasts unparalleled underwriting prowess
and strategic partnerships with top lenders. This unique combination allows us
to develop cutting-edge funding solutions and source attractive
alternatives from capital markets worldwide.
More than just funding: We offer comprehensive support,
pairing your project with the right team of experts – lenders, architects,
engineers, and more. Our seamless approach ensures you get the right
financing at the right time, even for complex or challenging
projects.
Project finance documents are voluminous, complex, expensive, and time-consuming, but they are essential for the successful construction, operation, and financing of a project. These documents can be broadly categorized into two groups:
Initial forecasting documents:
Prepared immediately after the project is conceived and before presenting it to lenders Include business plans, financial models, market feasibility studies, and financial feasibility studies
Used to convince lenders to provide project financing
Legal documents for project closing, development, construction, and operation:
Required by various stakeholders (lenders, sponsors, investors, government) Drafted by teams of lawyers representing different interests. Potential for gaps, overlaps, and conflicts due to diverging interests.
The legal documents for project closing, development, construction, and operation are numerous and complex, involving an "army of lawyers" from different stakeholder groups. Despite the extensive legal teams, there is often the risk of missing provisions, duplicative provisions, or conflicts due to the varying interests of the parties involved..
Project sponsors with prior experience in project finance view these documents not as a burden but as an opportunity to shape the nature and course of the project financing from conception through development and operations.
While the documentation process is complex and costly, it is critical for the successful execution of the project and securing the necessary project financing.
Engineering, Procurement & Construction Contracts:
In project financing, most stakeholders prefer turnkey contracts, especially the EPC (Engineering, Procurement, and Construction) type. These contracts ensure the contractor handles everything (design, materials, building) for a fixed price by a deadline. This minimizes risk for project sponsors and lenders, as they know the total cost upfront and have the contractor responsible for most potential issues. While similar to standard turnkey contracts, EPCs transfer design, engineering, and procurement risks to the contractor as well.
Operation & Maintenance Agreements (O&M Agreements):
where applicable, O&M Agreements are contracts used in project financing that outline how a completed project will be operated and maintained. Once construction is finished and the project is handed over, the focus shifts from development to ongoing operations.
Who's involved?
Project Company: Owns the project.
Operator: Manages, operates, and maintains the project. This can be: Project sponsor, Stakeholder, Project company itself or A third-party professional operator.
Why are O&M Agreements important?
· Establish a clear framework for project operation and maintenance.
· Delegate responsibilities to a qualified professional (if a third-party is chosen).
· Ensure expertise in the industry and local environment.
Off-take Agreements
Offtake Agreements are a crucial component among the myriad project finance documents, often carrying significant weight in securing project finance loans. While there are numerous essential documents, Offtake Agreements stand out for providing the financial assurances lenders require to validate cash flow forecasts, making them indispensable in project financing globally.
The significance of Offtake Agreements stems from their role in validating financial models, especially in projects without an established revenue stream. By providing documentary evidence of future revenue streams, Offtake Agreements bolster the credibility of financial projections and enhance the project's bankability. In essence, they bridge the gap between projected cash flows and debt service, instilling confidence in lenders and facilitating project financing approval.
Well-written and well-presented project documents, including Offtake Agreements, create a favorable impression and are instrumental in securing approval for project finance loans. Understanding the importance and nuances of Offtake Agreements is essential for navigating the complexities of project financing successfully.
Supply Agreements
Supply Agreements in project financing's serve as contractual agreements between the project company and key suppliers of raw materials, feed stock, or fuel. These agreements are pivotal in ensuring a steady volume of supplies to the project, with the flexibility to adjust supply volumes based on the project's output and sales to Off-takers.
The role of Supply Agreements is complementary to Off-take Agreements, as they help maintain a balance in production dictated by Off-take Agreements. Particularly crucial for projects dealing with fuel, electricity, natural gas, and similar commodities or utilities, Supply Agreements come in fixed or variable forms, often specifying minimum and maximum supply ranges.
Variable Supply Agreements may include interruptible supply options, offering lower-cost supplies that are subject to interruption. Conversely, some agreements may guarantee uninterrupted supply, ensuring operational continuity but potentially at higher costs. Understanding the nuances of Supply Agreements is essential in navigating project financing's successfully, especially in industries reliant on consistent and regulated supply chains.
Inter creditor Agreements (Where applicable)
Project finance documents often incorporate an Intercreditor Agreement, especially in consortium or syndicate-based project financings. This agreement governs the relationships and terms among project lenders providing financing to the project company, outlining common obligations and terms.
In cases where mezzanine funding is involved, the Intercreditor Agreement specifies subordination terms and principles between senior debt providers and mezzanine debt providers. This ensures clarity and alignment of interests among lenders, delineating rights and priorities in the event of default or other financial contingencies.
Understanding the nuances of Intercreditor Agreements is essential for all parties involved in project financing's, as they play a critical role in establishing the hierarchy of debt obligations and mitigating risks associated with multi-lender financing structures.
Shareholder’s Agreement
The Shareholder's Agreement, or SHA, is a critical document in project finance. It acts as a contract between the project sponsors. This agreement establishes a Special Purpose Entity (SPE), a legal entity specifically created to own, develop, and operate the project. The SHA is the foundation of the ownership structure for the project sponsors.
What the SHA Covers:
Investment Contributions: The SHA outlines how much each sponsor will contribute to the project's share capital.
Decision-Making Power: The agreement defines voting rights for each sponsor, determining their influence on project decisions.
Profit Sharing: The SHA establishes the policy for distributing profits (dividends) generated by the project among the sponsors.
Project Management: The agreement outlines how the SPE will be managed, including the appointment of directors or managers.
Exit Strategies: The SHA defines the process for sponsors to sell their ownership stake (disposal) or buy out other sponsors' shares (pre-emption rights).
In simpler terms, the SHA is a roadmap for the project sponsors, detailing their financial contributions, decision-making power, profit sharing, and how they can exit the project if needed.
Loan Agreement
The Loan Agreement is a pivotal document in project finance, establishing the terms of the loan and governing the relationship between lenders and the project company. It includes construction financing terms that outline how funds can be drawn based on construction progress, interest and fee calculations based on outstanding loan amounts, and standard provisions akin to corporate or real estate loan agreements.
This agreement contains specialized clauses tailored to the project's specific needs and aligns with other project finance documents. Given that project financing's rely on the project's success for loan repayment, the Loan Agreement includes dividend restrictions, project metrics, ratios, covenants, and general conditions precedent. It serves as a comprehensive framework outlining the borrower's obligations and the lender's rights, ensuring clarity and adherence to project financing requirements.
Engaging our services to prepare and negotiate the project finance documents is a strategic decision that proactively addresses and mitigates numerous potential challenges. This approach consistently delivers optimal outcomes for all stakeholders involved, thanks to several compelling advantages.
By entrusting us with the preparation and negotiation of these critical documents, you can expect:
1. Comprehensive expertise: Our team possesses in-depth knowledge and extensive experience in project finance documentation, ensuring that every aspect is meticulously handled and tailored to your specific requirements.
2. Conflict resolution: With our impartial perspective and skilled negotiation tactics, we can effectively navigate and resolve potential conflicts that may arise due to the diverging interests of various stakeholders.
3. Risk mitigation: Our thorough understanding of project finance dynamics enables us to identify and address potential risks proactively, safeguarding your interests and minimizing the likelihood of future complications.
4. Time and cost efficiency: By leveraging our specialized expertise and streamlined processes, we can expedite the documentation process, saving valuable time and resources while minimizing unnecessary expenses.
5. Optimal terms and conditions: Our negotiation skills and industry insights ensure that the project finance documents accurately reflect your objectives and secure favorable terms and conditions for all parties involved.
Engaging our services for project finance documentation preparation and negotiation is a strategic investment that pays dividends in the form of seamless execution, minimized risks, and optimal outcomes for all stakeholders involved in your project.
Initial forecasting documents:
Prepared immediately after the project is conceived and before presenting it to lenders Include business plans, financial models, market feasibility studies, and financial feasibility studies
Used to convince lenders to provide project financing
Legal documents for project closing, development, construction, and operation:
Required by various stakeholders (lenders, sponsors, investors, government) Drafted by teams of lawyers representing different interests. Potential for gaps, overlaps, and conflicts due to diverging interests.
The legal documents for project closing, development, construction, and operation are numerous and complex, involving an "army of lawyers" from different stakeholder groups. Despite the extensive legal teams, there is often the risk of missing provisions, duplicative provisions, or conflicts due to the varying interests of the parties involved..
Project sponsors with prior experience in project finance view these documents not as a burden but as an opportunity to shape the nature and course of the project financing from conception through development and operations.
While the documentation process is complex and costly, it is critical for the successful execution of the project and securing the necessary project financing.
Engineering, Procurement & Construction Contracts:
In project financing, most stakeholders prefer turnkey contracts, especially the EPC (Engineering, Procurement, and Construction) type. These contracts ensure the contractor handles everything (design, materials, building) for a fixed price by a deadline. This minimizes risk for project sponsors and lenders, as they know the total cost upfront and have the contractor responsible for most potential issues. While similar to standard turnkey contracts, EPCs transfer design, engineering, and procurement risks to the contractor as well.
Operation & Maintenance Agreements (O&M Agreements):
where applicable, O&M Agreements are contracts used in project financing that outline how a completed project will be operated and maintained. Once construction is finished and the project is handed over, the focus shifts from development to ongoing operations.
Who's involved?
Project Company: Owns the project.
Operator: Manages, operates, and maintains the project. This can be: Project sponsor, Stakeholder, Project company itself or A third-party professional operator.
Why are O&M Agreements important?
· Establish a clear framework for project operation and maintenance.
· Delegate responsibilities to a qualified professional (if a third-party is chosen).
· Ensure expertise in the industry and local environment.
Off-take Agreements
Offtake Agreements are a crucial component among the myriad project finance documents, often carrying significant weight in securing project finance loans. While there are numerous essential documents, Offtake Agreements stand out for providing the financial assurances lenders require to validate cash flow forecasts, making them indispensable in project financing globally.
The significance of Offtake Agreements stems from their role in validating financial models, especially in projects without an established revenue stream. By providing documentary evidence of future revenue streams, Offtake Agreements bolster the credibility of financial projections and enhance the project's bankability. In essence, they bridge the gap between projected cash flows and debt service, instilling confidence in lenders and facilitating project financing approval.
Well-written and well-presented project documents, including Offtake Agreements, create a favorable impression and are instrumental in securing approval for project finance loans. Understanding the importance and nuances of Offtake Agreements is essential for navigating the complexities of project financing successfully.
Supply Agreements
Supply Agreements in project financing's serve as contractual agreements between the project company and key suppliers of raw materials, feed stock, or fuel. These agreements are pivotal in ensuring a steady volume of supplies to the project, with the flexibility to adjust supply volumes based on the project's output and sales to Off-takers.
The role of Supply Agreements is complementary to Off-take Agreements, as they help maintain a balance in production dictated by Off-take Agreements. Particularly crucial for projects dealing with fuel, electricity, natural gas, and similar commodities or utilities, Supply Agreements come in fixed or variable forms, often specifying minimum and maximum supply ranges.
Variable Supply Agreements may include interruptible supply options, offering lower-cost supplies that are subject to interruption. Conversely, some agreements may guarantee uninterrupted supply, ensuring operational continuity but potentially at higher costs. Understanding the nuances of Supply Agreements is essential in navigating project financing's successfully, especially in industries reliant on consistent and regulated supply chains.
Inter creditor Agreements (Where applicable)
Project finance documents often incorporate an Intercreditor Agreement, especially in consortium or syndicate-based project financings. This agreement governs the relationships and terms among project lenders providing financing to the project company, outlining common obligations and terms.
In cases where mezzanine funding is involved, the Intercreditor Agreement specifies subordination terms and principles between senior debt providers and mezzanine debt providers. This ensures clarity and alignment of interests among lenders, delineating rights and priorities in the event of default or other financial contingencies.
Understanding the nuances of Intercreditor Agreements is essential for all parties involved in project financing's, as they play a critical role in establishing the hierarchy of debt obligations and mitigating risks associated with multi-lender financing structures.
Shareholder’s Agreement
The Shareholder's Agreement, or SHA, is a critical document in project finance. It acts as a contract between the project sponsors. This agreement establishes a Special Purpose Entity (SPE), a legal entity specifically created to own, develop, and operate the project. The SHA is the foundation of the ownership structure for the project sponsors.
What the SHA Covers:
Investment Contributions: The SHA outlines how much each sponsor will contribute to the project's share capital.
Decision-Making Power: The agreement defines voting rights for each sponsor, determining their influence on project decisions.
Profit Sharing: The SHA establishes the policy for distributing profits (dividends) generated by the project among the sponsors.
Project Management: The agreement outlines how the SPE will be managed, including the appointment of directors or managers.
Exit Strategies: The SHA defines the process for sponsors to sell their ownership stake (disposal) or buy out other sponsors' shares (pre-emption rights).
In simpler terms, the SHA is a roadmap for the project sponsors, detailing their financial contributions, decision-making power, profit sharing, and how they can exit the project if needed.
Loan Agreement
The Loan Agreement is a pivotal document in project finance, establishing the terms of the loan and governing the relationship between lenders and the project company. It includes construction financing terms that outline how funds can be drawn based on construction progress, interest and fee calculations based on outstanding loan amounts, and standard provisions akin to corporate or real estate loan agreements.
This agreement contains specialized clauses tailored to the project's specific needs and aligns with other project finance documents. Given that project financing's rely on the project's success for loan repayment, the Loan Agreement includes dividend restrictions, project metrics, ratios, covenants, and general conditions precedent. It serves as a comprehensive framework outlining the borrower's obligations and the lender's rights, ensuring clarity and adherence to project financing requirements.
Engaging our services to prepare and negotiate the project finance documents is a strategic decision that proactively addresses and mitigates numerous potential challenges. This approach consistently delivers optimal outcomes for all stakeholders involved, thanks to several compelling advantages.
By entrusting us with the preparation and negotiation of these critical documents, you can expect:
1. Comprehensive expertise: Our team possesses in-depth knowledge and extensive experience in project finance documentation, ensuring that every aspect is meticulously handled and tailored to your specific requirements.
2. Conflict resolution: With our impartial perspective and skilled negotiation tactics, we can effectively navigate and resolve potential conflicts that may arise due to the diverging interests of various stakeholders.
3. Risk mitigation: Our thorough understanding of project finance dynamics enables us to identify and address potential risks proactively, safeguarding your interests and minimizing the likelihood of future complications.
4. Time and cost efficiency: By leveraging our specialized expertise and streamlined processes, we can expedite the documentation process, saving valuable time and resources while minimizing unnecessary expenses.
5. Optimal terms and conditions: Our negotiation skills and industry insights ensure that the project finance documents accurately reflect your objectives and secure favorable terms and conditions for all parties involved.
Engaging our services for project finance documentation preparation and negotiation is a strategic investment that pays dividends in the form of seamless execution, minimized risks, and optimal outcomes for all stakeholders involved in your project.
Collateral transfer refers to the transfer or assignment of collateral assets from one party to another in a financing transaction. It is a common practice in project finance and structured finance deals
What is Collateral Transfer & Project Finance?
Collateral Transfer represents an innovative approach to accessing substantial capital for financing commercial ventures and specific projects. It enables Borrowers to obtain secured loans without burdening existing assets, especially in cases where Borrowers lack sufficient assets and security for traditional lending criteria.
By seamlessly combining two concurrent facilities, Collateral Transfer involves the infusion of investment capital through a Bank Guarantee (or Demand Guarantee) alongside the utilization of imported collateral to secure short to mid-term funding at competitive interest rates via a lombard loan.
This mechanism empowers commercial enterprises with limited security for traditional lending facilities to swiftly raise capital for short to mid-term projects.
FundXperts can exclusively facilitate corporate loans through the means of Collateral Transfer to a wide variety of international clients. We offer fast-track lending from €2m and up to €9m for small project ventures & €10 up to €100m for Big project ventures with a low monthly equivalent interest rate compared to the current short-term fund rates.
These packages are offered on different Terms and can be fast-tracked for turn-around inside 15 working days.
Collateral is limited, and a Provider will only offer to their maximum limit which is dependent upon the status of the applicant and current market conditions. Providers will issue the Bank Guarantees from international banks, making them widely acceptable; all Guarantees are issued inter-bank via SWIFT. Applicants can provide their own verbiage, although all Guarantees issued under these facilities contain standard credit facility Guarantee wording (ICC758) which can be provided upon request.
Typically, Terms can range from 1 year, renewable to up to 5 years, depending on the willingness of the Provider and the strength of the applicant. Longer Terms are sometimes negotiable to 10 years although this may only be available to very strong applicants and longer-term projects.
Bank Guarantee Contract Fees, for amounts of €10m to €100m, levied by Provider’s are commonly between 05,50% and 08,50% per annum, depending on the Term, amount and current market demand. Multiple Bank Guarantee contracts will of course attract lower rates.
If the applicant is not a listed company or has a trading history less than 4 years, the Provider may request that a Security Deposit contribution is paid against the Bank Guarantee Contract Fee upon acceptance of their collateral offer contract.
The deposits are paid to the Provider directly or to an acceptable escrow arrangement that the Provider will open specifically for the contract. At completion, the deposit is deducted from the Contract Fee.
In some cases, the Providers may add a Facility Fee of around 0.15% to 0.25% and this is often included in the Contract Fee.
Some Providers may also levy legal fees or assignment fees which are payable at completion. However, FundXperts are often successful in negotiating these fees to be included in the Contract Fee; there are no other charges or hidden costs.
All costs, Procedures and Terms are detailed in full in the Term Sheet we provide before the applicant is required to make any financial commitment. There is no obligation to accept Terms once they are offered.
Indicative Terms, guidance and illustrations are available upon request without obligation.
A Summary of Our Competitive Offerings:
Streamlined Application Process: Get started quickly with our efficient application procedures, ensuring a smooth and compliant experience.
Favorable Rates: Benefit from competitive collateral rates as low as 5.25% p.a. and lending rates starting from Euribor + 0.5% p.a.
Customized Solutions: We tailor facility structures to your specific project funding needs, ensuring a perfect fit.
Flexible Funding Options: Access funding from €10 million to unlimited amounts (subject to project and location).
Global Reach: We consider projects in most international jurisdictions (contact us for details).
Long-Term Support: Secure funding terms ranging from 3 to 10 years, providing stability for your project.
Scalability and Flexibility: Explore our bespoke bolt-on facilities, including the option to convert loans at renewal.
Reduced Risk: No personal guarantees are required, minimizing your personal financial exposure.
Transparent Fees: Our competitive transaction and Collateral fees are deducted from the loan proceeds upon completion, ensuring upfront cost clarity.( Some fee are required upfront)
Additional Services: We offer comprehensive corporate restructuring services to support your overall business goals.
In short, we provide a one-stop shop for project funding, offering efficient processes, competitive rates, customized solutions, and flexible terms to meet your specific needs. Contact us today to discuss your project!
What is Collateral Transfer & Project Finance?
Collateral Transfer represents an innovative approach to accessing substantial capital for financing commercial ventures and specific projects. It enables Borrowers to obtain secured loans without burdening existing assets, especially in cases where Borrowers lack sufficient assets and security for traditional lending criteria.
By seamlessly combining two concurrent facilities, Collateral Transfer involves the infusion of investment capital through a Bank Guarantee (or Demand Guarantee) alongside the utilization of imported collateral to secure short to mid-term funding at competitive interest rates via a lombard loan.
This mechanism empowers commercial enterprises with limited security for traditional lending facilities to swiftly raise capital for short to mid-term projects.
FundXperts can exclusively facilitate corporate loans through the means of Collateral Transfer to a wide variety of international clients. We offer fast-track lending from €2m and up to €9m for small project ventures & €10 up to €100m for Big project ventures with a low monthly equivalent interest rate compared to the current short-term fund rates.
These packages are offered on different Terms and can be fast-tracked for turn-around inside 15 working days.
Collateral is limited, and a Provider will only offer to their maximum limit which is dependent upon the status of the applicant and current market conditions. Providers will issue the Bank Guarantees from international banks, making them widely acceptable; all Guarantees are issued inter-bank via SWIFT. Applicants can provide their own verbiage, although all Guarantees issued under these facilities contain standard credit facility Guarantee wording (ICC758) which can be provided upon request.
Typically, Terms can range from 1 year, renewable to up to 5 years, depending on the willingness of the Provider and the strength of the applicant. Longer Terms are sometimes negotiable to 10 years although this may only be available to very strong applicants and longer-term projects.
Bank Guarantee Contract Fees, for amounts of €10m to €100m, levied by Provider’s are commonly between 05,50% and 08,50% per annum, depending on the Term, amount and current market demand. Multiple Bank Guarantee contracts will of course attract lower rates.
If the applicant is not a listed company or has a trading history less than 4 years, the Provider may request that a Security Deposit contribution is paid against the Bank Guarantee Contract Fee upon acceptance of their collateral offer contract.
The deposits are paid to the Provider directly or to an acceptable escrow arrangement that the Provider will open specifically for the contract. At completion, the deposit is deducted from the Contract Fee.
In some cases, the Providers may add a Facility Fee of around 0.15% to 0.25% and this is often included in the Contract Fee.
Some Providers may also levy legal fees or assignment fees which are payable at completion. However, FundXperts are often successful in negotiating these fees to be included in the Contract Fee; there are no other charges or hidden costs.
All costs, Procedures and Terms are detailed in full in the Term Sheet we provide before the applicant is required to make any financial commitment. There is no obligation to accept Terms once they are offered.
Indicative Terms, guidance and illustrations are available upon request without obligation.
A Summary of Our Competitive Offerings:
Streamlined Application Process: Get started quickly with our efficient application procedures, ensuring a smooth and compliant experience.
Favorable Rates: Benefit from competitive collateral rates as low as 5.25% p.a. and lending rates starting from Euribor + 0.5% p.a.
Customized Solutions: We tailor facility structures to your specific project funding needs, ensuring a perfect fit.
Flexible Funding Options: Access funding from €10 million to unlimited amounts (subject to project and location).
Global Reach: We consider projects in most international jurisdictions (contact us for details).
Long-Term Support: Secure funding terms ranging from 3 to 10 years, providing stability for your project.
Scalability and Flexibility: Explore our bespoke bolt-on facilities, including the option to convert loans at renewal.
Reduced Risk: No personal guarantees are required, minimizing your personal financial exposure.
Transparent Fees: Our competitive transaction and Collateral fees are deducted from the loan proceeds upon completion, ensuring upfront cost clarity.( Some fee are required upfront)
Additional Services: We offer comprehensive corporate restructuring services to support your overall business goals.
In short, we provide a one-stop shop for project funding, offering efficient processes, competitive rates, customized solutions, and flexible terms to meet your specific needs. Contact us today to discuss your project!
To attract investors, lenders, and other stakeholders for a project, sponsors must present a compelling proposal that justifies the significant investment of capital. Unlike investing in already operational assets with proven revenue streams, project financings involve developing new assets without existing revenue, expenses, or cash flows. With this lack of operational history, project sponsors must base proposals to potential equity investors and lenders on financial projections, presented through detailed financial models and business plans.
Financial models are sophisticated spreadsheet tools that use extensive assumptions and variables to forecast capital costs, revenues, expenses, cash flows, and future asset valuations. Project sponsors are required to use these models to negotiate with investors/lenders and to support appraisals and feasibility studies.
Since financial models essentially form the entire basis for investing in or lending to the proposed project, they must:
1) Use reasonable, credible, and transparent assumptions that reflect anticipated real-world scenarios.
2) Be capable of sensitivity analysis to calculate projections across a range of data variations.
3) Demonstrate compelling future profits and investment returns sufficient to convince investors/lenders to commit capital to the project.
In essence, we can help with a well-constructed financial models and persuasive business plans that are critical for project sponsors to secure project financing by quantifying and selling the investment opportunity to stakeholders.
Financial models are sophisticated spreadsheet tools that use extensive assumptions and variables to forecast capital costs, revenues, expenses, cash flows, and future asset valuations. Project sponsors are required to use these models to negotiate with investors/lenders and to support appraisals and feasibility studies.
Since financial models essentially form the entire basis for investing in or lending to the proposed project, they must:
1) Use reasonable, credible, and transparent assumptions that reflect anticipated real-world scenarios.
2) Be capable of sensitivity analysis to calculate projections across a range of data variations.
3) Demonstrate compelling future profits and investment returns sufficient to convince investors/lenders to commit capital to the project.
In essence, we can help with a well-constructed financial models and persuasive business plans that are critical for project sponsors to secure project financing by quantifying and selling the investment opportunity to stakeholders.
Utilize financial engineering to convert an asset or a collection of assets into a security. Acquiring lump sum financing based on future income streams,or asset doesn't have to be complex.
Asset Securitization is a financial strategy that allows companies to convert illiquid assets - such as proven mineral
deposits including mining or oil and gas reserves - into tradable securities.
While securing finance through any securitization methods may appear challenging and time-consuming at times, our partners at FundXperts simplify the financing process. We also tailor finance packages to suit more intricate scenarios and meet your specific requirements.
In the process of securitisation, assets earmarked for securitisation are transferred to a special purpose vehicle (SPV) to shield them from any claims or repayment obligations of the end borrower. The SPV then issues bonds or other debt instruments, using the funds raised to compensate the ultimate borrower for the assets.
This arrangement allows the borrower to raise capital without risking assets beyond those held by the SPV, receiving a lump sum in exchange while keeping the debt off-balance sheet due to the limited recourse. Securitisation essentially involves selling a stream of cash flows, providing benefits to investors by expanding their investment options and simplifying analysis since they only need to assess cash flows from a small pool of assets rather than a complex business.
Raise up to $20,000,000 in capital by issuing 144A Bonds through a Special Purpose Vehicle (SPV).
Why Choose 144A Bonds?
144A Bonds provide a fast and efficient way to access substantial capital by offering debt securities to qualified institutional buyers. This method not only allows you to raise significant funds, but it also broadens your investor base and enhances your company's reputation in the financial market.
Our Comprehensive Service Package
For a one-time fee, FundXperts team will assist you with the entire 144A Bonds issuance process, from start to finish. Our all-inclusive service package includes:
SPV Formation: We will help you establish a legally separate entity, specifically tailored to your business requirements, to facilitate the bond issuance.
144A Bonds Structuring: Our team of experts will work closely with you to design a bond structure that meets your financial objectives and optimizes your cost of capital.
Documentation and Regulatory Compliance: We will ensure that all necessary documentation is prepared and submitted in compliance with applicable regulations and industry standards.
Investor Outreach and Marketing: We will leverage our extensive network of qualified institutional buyers to market your bonds and secure the best possible terms for your issuance.
Ongoing Support: Our team will remain at your side throughout the entire process, providing expert guidance and support to ensure a successful bond issuance.
Take Advantage of this Unique Opportunity
Don't miss the chance to secure substantial capital for your business through the issuance of 144A Bonds. With FundXperts all-inclusive service, you can confidently navigate the complex process and maximize the potential benefits of this powerful financial tool.
To learn more about our 144A Bonds issuance service or to get started, please contact us via our website contact page or email: kess@fundxperts.com
Our team of experts is ready to help you achieve your financial goals.
Asset Securitization is a financial strategy that allows companies to convert illiquid assets - such as proven mineral
deposits including mining or oil and gas reserves - into tradable securities.
While securing finance through any securitization methods may appear challenging and time-consuming at times, our partners at FundXperts simplify the financing process. We also tailor finance packages to suit more intricate scenarios and meet your specific requirements.
In the process of securitisation, assets earmarked for securitisation are transferred to a special purpose vehicle (SPV) to shield them from any claims or repayment obligations of the end borrower. The SPV then issues bonds or other debt instruments, using the funds raised to compensate the ultimate borrower for the assets.
This arrangement allows the borrower to raise capital without risking assets beyond those held by the SPV, receiving a lump sum in exchange while keeping the debt off-balance sheet due to the limited recourse. Securitisation essentially involves selling a stream of cash flows, providing benefits to investors by expanding their investment options and simplifying analysis since they only need to assess cash flows from a small pool of assets rather than a complex business.
Raise up to $20,000,000 in capital by issuing 144A Bonds through a Special Purpose Vehicle (SPV).
Why Choose 144A Bonds?
144A Bonds provide a fast and efficient way to access substantial capital by offering debt securities to qualified institutional buyers. This method not only allows you to raise significant funds, but it also broadens your investor base and enhances your company's reputation in the financial market.
Our Comprehensive Service Package
For a one-time fee, FundXperts team will assist you with the entire 144A Bonds issuance process, from start to finish. Our all-inclusive service package includes:
SPV Formation: We will help you establish a legally separate entity, specifically tailored to your business requirements, to facilitate the bond issuance.
144A Bonds Structuring: Our team of experts will work closely with you to design a bond structure that meets your financial objectives and optimizes your cost of capital.
Documentation and Regulatory Compliance: We will ensure that all necessary documentation is prepared and submitted in compliance with applicable regulations and industry standards.
Investor Outreach and Marketing: We will leverage our extensive network of qualified institutional buyers to market your bonds and secure the best possible terms for your issuance.
Ongoing Support: Our team will remain at your side throughout the entire process, providing expert guidance and support to ensure a successful bond issuance.
Take Advantage of this Unique Opportunity
Don't miss the chance to secure substantial capital for your business through the issuance of 144A Bonds. With FundXperts all-inclusive service, you can confidently navigate the complex process and maximize the potential benefits of this powerful financial tool.
To learn more about our 144A Bonds issuance service or to get started, please contact us via our website contact page or email: kess@fundxperts.com
Our team of experts is ready to help you achieve your financial goals.