Finacorp offers an extensive range of long term financing solutions to banks and financial institutions. Tailored to your very specific asset management and balance sheet optimization needs, our solution brings long term capital enhancing measures for banks, insurance companies, PERE funds and asset management firms. requiring important funds.

Since the Basel accord, a bank's minimum required capital has to be 8% of its balance sheet total. Capital consists of Tier 1 and Tier 2 capital. Tier 1 capital is a bank's core capital, with equity and retained earnings, whereas Tier 2 capital is a bank's supplementary capital including i.a. reserves, subordinated debt and hybrid debt or equity instruments.

A bank's total capital is calculated by adding its tier 1 and tier 2 capital together. Regulators and clients use the capital ratio to measure a bank’s financial health and rank a bank's capital adequacy vis-à-vis its total business volume.

Finacorp has the ability to structure, underwrite, place or hold for our own account and manage your banks' perpetual securities and contingent convertible notes (commonly called “CoCos”) which constitute Tier 1 capital as per Basel standards.

Additionally, we partner with large investment firms who have developed a proprietary product and structure to enhance traditional perpetual and CoCo notes through alternative structuring and risk mitigation techniques.

Just a handful of major banks across Europe - such as UBS, Société Générale, Credit Suisse, Deutsche Bank and Royal Bank of Scotland - have issued about €91 billion ($102 billion) of additional tier-1 capital from April 2013 until early 2016, thus leveraging their capital availability for additional business manyfold.

In partnership with investment banks and institutional lenders, Finacorp funds new or seasoned large commercial and government sponsored loans, pools of retail and residential loans as well as balloon loans.

Existing loan portfolios can be refinanced through a long term facility at market conform LIBOR+ low margin interest rates. This will keep your borrowers happy and help you conserve cash on hand. You benefit by charging an annual fee to your borrower for the management of the engagement, while we arrange to fund your new or existing loans with tailored redemption agreements: interest-only or amortization. The client relationship remains entirely at your institution.

In this partnership, your institution will arrange for a letter of credit to be issued and we will arrange to fully subscribe to it and provide the funding. The letter of credit is subject to credit approval and terms and conditions mutually accepted.

• 1 to 30 year terms (case by case)

• Interest only or amortizing

• Funds will be in USD exclusively

• Amounts: USD $50 Million and larger

• Flexible structures agreed on term sheet

• Low covenant requirements

• Full compliance with all US and international banking regulations and laws

This product is ideal for large corporate loans and infrastructure financings that exceed your institution’s lending limits, but that are critical projects to the local economy.