Though interest rates dropped significantly, due to Basel III (Basel IV is coming up) the economy and markets, banks have decreased their own lending, project finance and other activities, especially to SME and large projects. Insurance companies as well as other regulated investors have also needed to change their direct and indirect investments due to Solvency II. Investors have also experienced a lack of long term efficient investments opportunities with good (sovereign or corporate) products, with relatively safe and (almost) guaranteed decent revenues and/or yields.
Findercod hence created an innovative deconsolidating long term alternative financing solution (the “Financing Solution” or “DAFS”) vs. traditional bank debt. This Financing Solution allows investors to find an investment alternative in the difficult current environment, and provides financing to help companies achieve their full potential/development. Since the Financing Solution is structured in a deconsolidating manner, it does not penalize but rather enhances the companies’ various financial ratios and permits companies to finance their projects while investors comply with current and future regulations.
The Financing Solution can replace but can also be an additional and complementary source of financing to traditional bank loans.
Taking advantage of current low yields offered in the market, this new type of investment bridges the interests of investors with an appetite for visible recurring returns, with that of fast growing corporates in need of financing for multiple and/or large projects. Investors today also need to contribute to adding tangible value to the economy, while getting security, visibility and transparency of their investment.
This Financing Solution leverages a current market opportunity to seize.