What is Collateral Transfer & Project Finance?

Collateral Transfer is a dynamic way of raising high-level capital to finance commercial enterprises and specific projects. It allows the Borrower to raise secured borrowings without encumbering existing assets, or where the Borrower holds inadequate assets and security for conventional lending requirements.

Combining effectively two simultaneous facilities, Collateral Transfer is the injection of investment capital via the medium of a Bank Guarantee (or Demand Guarantee) and the fusion of a lombard loan indirectly utilising the imported collateral to secure short to mid-term funding at competitive lending rates.

Allowing commercial enterprises that do not have adequate security for conventional lending facilities to raise capital swiftly for short to mid-term projects.

Facilities start from €10 million and available in Swiss Francs, EURO€ and GBP£ currencies. Lower funding packages on similar terms are available for SME's on a case-by-case basis, please contact us for more information.

• A swift and compliant application procedure
• Competitive collateral rates from 05,25% p.a.
• Lending rates from Euribor + 0.5% pa
• Bespoke facility designed around your project funding requirement
• Available from €10 million – unlimited (subject to project / location)
• Most international jurisdictions considered (please call for details)
• Funding terms up to 7 to 10 years
• Bespoke bolt-on facilities, including convertible loan options at renewal
• No personal guarantees required
• Free quotations and illustrations upon request
• Competitive transaction and booking fees
• Fees deducted from loan proceeds, paid at completion
• Corporate restructuring services available
• A unique and dedicated Client Relationship Manager is assigned to each application.

Fees & Prices

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, Novex Global Capital 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.