- Client: Middle Eastern National
- Net Worth: UHNW
- Financing requirements: €10 Million
- Terms offered: 75% LTV
In this case, we assisted an UHNWI in securing a non-recourse, single-stock loan on their holding in Middle Eastern stock to purchase a property in Europe. The financing was secured against their shareholding with an LTV of 75%.
The constraints were predominantly time and pricing. The client had already made an offer on the property and wanted to complete it within a couple of weeks. In addition, they were very price-conscious and wanted the most competitive terms relative to the amount borrowed and the term. Terms were secured and closing was under a month. A non-recourse loan means that if the loan defaults, the lender can only use the pledged collateral to satisfy the debt obligation. The borrower has no further obligation or risk of personal assets. In reverse, borrowers can also retain economically beneficial ownership of their shares, entitling them to all future market appreciation and dividends.
Single Stock Loans, a unique financial instrument, provide access to liquidity while retaining all beneficial economic ownership of the pledged collateral. Unlike a traditional mortgage, they offer more attractive pricing metrics. Our network of lenders and partners specialises in working directly with long-term, concentrated shareholders to provide competitive non-recourse capital against their equity assets. This case study is a prime example of how such loans can be utilised to provide access to liquidity.
Enness does not give investment advice or advice on Securities Backed Lending. Lender financing introductions are unregulated.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
