Financial Guarantees for bond issues (Private Placements)
- More attractive risk profile of the bond thanks to Credendo – Export Credit Agency’s high credit rating
- Another way to raise MLT funds from private investors for investment
- MLT bond issued by Belgian company with international operations, wanting to raise funds
- Credendo – Export Credit Agency guarantees up to 50% of the issued bond
- Helps improve the risk profile for the benefit of the bondholder (investor)
- Bank acts as an agent
- Limited number of private investors
In the framework of a private placement, Credendo – Export Credit Agency can issue a guarantee for the benefit of the bondholders. It facilitates the issue of bonds by the Belgian company thanks to an improved risk profile.
The bond issue is usually conducted by a bank, which also manages the transaction.
The issuing Belgian company will repay the borrowed funds to the bondholders at fixed intervals.
The investors are willing to subscribe to a privately contracted bond (not via public markets) issued by Belgian businesses with international operations.
Given their private nature, the issue of bonds is restricted to a limited number of investors (<50). There is no active marketing by the issuing company.
Credendo – Export Credit Agency remains at any time pari passu with the bondholders.
No fee-sharing; pricing has to be in line with the prevailing market.
Credendo – Export Credit Agency offers a complete range of products with the same goal: controlling risks related to foreign buyers in foreign countries. The ECA’s products are specifically destined for capital goods, services and contract works from Belgium. Not only Belgian exporters but also banks can make use of the products, which can also result in various financing solutions for the exporter and/or the foreign buyer.
Being the official Export Credit Agency for Belgium, Credendo – Export Credit Agency complies with OECD rules, concerning the structure of export credits as well as the regulated premium percentage.