How does renewal work and what are the renewal rates / costs? Collateral Transfer facilities are issued for 12 month periods and multiples thereof. However, most facilities are offered initially as 12 month contracts with an option to renew for a further 12 months (year on year), up to a maximum of 60 or 72 months…

Collateral Transfer facilities provide an excellent model for short to mid-term financing and solutions for raising capital. However, they are not the be-all and end-all solution to longer term business or project finance…

As Collateral Transfer facilities are founded on the injection of an inter-bank financial instrument (Bank Guarantee or Standby Letter of Credit) from the Provider’s bank to the Recipient’s bank, the transaction relies on both banks talking to each other…