Assetinsure has participated in risk facilities totalling $US 6 Billion. Cover has been provided in over 30 countries and across 35 different industries.
Credit Enhancement Insurance assists lenders in mitigating or transferring credit risk.
The purpose of this specialist class of insurance is to enhance a borrower’s access to structured, project and asset based finance.
Credit enhancement insurance is designed to protect lenders against the risk of financial default. It can deliver a more efficient funding package by providing certain assurances if the borrower defaults against its loan.
With credit enhancement, the borrowers can benefit from higher collateral leverage, a longer loan term, interest only period, lower amortisation profiles and/or improved risk pricing offered by the lender.
Credit enhancement insurance policies are issued by HDI Global Specialty SE Australia, a wholly owned subsidiary of A+ S&P rated HDI Global Specialty SE.
We are a team of highly qualified banking professionals each with over 25 years’ experience in wholesale banking, commercial lending and loan syndication.
To discuss your Credit Enhancement insurance requirements, please call Brian Satterthwaite or Marc Nicholls on +61 2 9251 8055.
Credit Enhancement Insurance Policies (CEIPs) - how can they help?
- When borrower exposure limits are reached
- When collateral type and asset class credit approval restrictions exist
- When risk sharing is required outside of traditional bank sell down routes
How are CEIPs structured?
CEIP coverage can be structured on the basis of either;
- First loss protection; or
- Proportional (i.e. pari passu) participation.
What can a CEIP provide?
- Tangible liquid security (HDI Global Specialty A+ S&P rated);
- Cost effective risk management to the benefit of lenders and their borrowers;
- No loss of control where a First Loss position is taken (full subordination to the Lender).
What types of customers do CEIPS support?
- Single large commercial real estate investments, structured corporate finance, leveraged finance, commercial equipment lease finance or asset backed loan facilities;
- Infrastructure or project finance type facilities where risk sharing is required;
- Defined risk positions in corporate trade accounts receivable warehouse loan and securitisation funding structures;
- Defined risk postitions in other pooled commercial mortgage or equipment loan / lease warehouse and securitisation funding structures.
What is the benefit of a CEIP?
Specific benefits provided to the parties are:
- Managed Risk – Borrower achieves an attractive “term”
- Credit Relief
- Cost effective
- Client retention
- Undiscolsed – bilateral transaction direct with the Bank
- Recovery Enhancement