Customer story
Financial guarantee for capital relief and credit enhancement
Challenge
A large client in the real estate development sector was looking to free up equity in order to grow faster. The client’s existing funding network was not able to provide enough advance rate so equity was trapped as security towards the current funders. This prevented the client to grow the business faster.
Solution
Capbrokers setup up a financial guarantee framework with an international investment bank in which the guarantees per project replaced the equity needed by the senior funders. This credit enhancement enabled the client to free liquidity needed to grow its real estate portfolio.
Key indicators
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Financial guarantee
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Credit risk mitigation of portfolio of counterparties
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Amounts between EUR 10M – EUR 25M per guarantee
Learn more about this case
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