Renewing Collateral Transfer Facilities

IntaCapital Swiss are specialists in Collateral Transfer Agreements, which is a contract between two companies designated the Provider and the Beneficiary, where the Provider essentially leases a Bank Guarantee, to the Beneficiary.

For more information on the Provider, please see “Who Are Providers and What Are Their Benefits from Leasing Bank Guarantees”.

Renewing Collateral Transfer Agreements, which usually have an expiry date of one year, can be rolled on for a second year, and up to maximum of seven years depending on the underlying agreement and the requirements of the project.

Under the Terms and Conditions of a Collateral Transfer Agreement, the costs to the Beneficiary in year one consist of the Provider’s fees, the lender arrangement fees, due diligence fees, booking and legal fees.

When the Bank Guarantee is rolled over, the costs to the Beneficiary in year two and subsequent years are usually reduced to just the Provider’s renewal fee and bank charges, making long-term facility renewals significantly more economical.