Who Are Providers?

Who Are Providers And What Are Their Benefits From Leasing Bank Guarantees?

Providers are usually sophisticated investors, can be found in the financial centres throughout the world and are major players in the many different financial markets. What binds these companies together are their huge balance sheets, and are usually recognised as, Sovereign Wealth Funds, Private Equity Funds, Hedge Funds, Larger Family Offices and institutions that tend to be cash rich.

These Provider groups have access to a vast array of assets which they can use as collateral to provide Bank Guarantees, for leasing or Collateral Transfer facilities. These assets may include government bonds, medium-term notes (MTNs), treasury paper, cash deposits, or precious metals.

A Collateral Transfer Agreement is where the Provider enters into a contract with another company, (referred to as the Beneficiary), and rents or leases an asset to them in return for a fee (referred to as the Collateral Transfer Fee).

When leasing a Bank Guarantee the Provider will look at their asset base, and if they have relative underperforming assets, such as a Medium-Term Note (MTN), they will instruct their bank to block that asset in favor of the Beneficiary and issue a Demand Bank Guarantee via SWIFT MT760.

Many companies throughout the world are finding it very difficult to access credit facilities. IntaCapital Swiss with their unique access to Providers and facilitating banks can bridge this gap and help companies arrange bespoke Collateral Transfer facilities.