A modern route to institutional style debt capital
FDM supports issuers seeking to finance acquisitions, infrastructure, refinancing, asset growth and long term working capital through secured or asset backed bond structures.
The objective is not to replace disciplined credit analysis. It is to combine proven bond structuring principles with a more efficient digital operating model.
Common uses of proceeds
1.
Acquisitions and industry consolidation
2.
Refinancing of existing debt
3.
Expansion capital and capital expenditure
4.
Infrastructure development
5.
Asset backed lending and loan book finance
6.
Property and project development
7.
Working capital and growth funding
8.
Public sector related and essential infrastructure projects
Key structuring decisions
Issue size
The amount to be raised and whether capital should be drawn in stages
Coupon
Fixed or floating interest rate, payment frequency and repayment capacity
Term
The period to maturity, commonly structured around the asset life and cash flow profile
Security
The assets, receivables, guarantees or cash flows supporting the bondholders
Interest reserve
Whether a reserve should be established to support early coupon payments
Use of proceeds
A clear and controlled application of funds
Investor protections
Reporting, covenants, transfer restrictions, security enforcement arrangements and governance
Investor confidence is built before issuance.
Strong security, a credible use of proceeds, transparent reporting, appropriate covenants and a realistic interest reserve can materially improve the quality of an issuer’s proposition.