Changes in the regulatory and economic landscape have increased the need for structured finance solutions and they are used as an alternative source of funding for established businesses, to fund start-up businesses (such as fintechs), increase a financial institution’s funding capability, monetise non-core assets and to dispose of non-performing assets.
Not all financings are the same and it may be necessary to consider more bespoke solutions to mitigate credit risk or the regulatory landscape in order to lower financing costs or to improve the conditions on which the financing can be provided, for example by accessing alternative funding sources. The transactions are typically structured around assets, such as trade receivables, loans, leases, commercial and residential real estate, cars, inventory, commodities, plant and equipment.
Our integrated approach
Structured finance transactions require a clear understanding and careful analysis of the legal, tax, foreign exchange and regulatory framework in which the parties that are involved conduct business and within which the transactions are intended to operate.
Our multidisciplinary specialist team in South Africa, supported by over 70 offices globally and a network of firms in other African countries, can help financial institutions, financial and institutional investors, funds and corporates to develop and implement domestic and cross-border structured finance solutions in South Africa and other African countries. We are experienced, creative and solution-driven, understand the need for solid and timely support and acknowledge the cost constraints to which our clients are subject.
Structured finance transactions on which we advise can take many forms, and include:
- asset-backed commercial paper
- borrowing-base lending
- covered bonds
- credit-linked financing (loans and bonds)
- inventory financing
- illiquid assets and non-performing loan financings
- loan repackagings
- loan and lease portfolio participations and sales
- project bonds
- public and private securitisations
- supply-chain financing