Insurance Wrap for Project Financing

This is just collateral enhancement for larger Project financing.

An insurance wrap is an all-encompassing liability policy, or financial instrument, that protects all investors working and investing on large projects costing over $10 million. It is a credit enhancement for projects that can improve credit rating and will allow the project to access funding from pension funds and other professional capital market investors. An insurance wrap is a specialty insurance vehicle that serves as a financial guarantee, typically from an AAA investment grade guarantor, which allows the borrower to raise the debt or equity needed on the project with minimal mitigated risk without diluting equity and ownership of the project or operation. An insurance wrap is a grade-A guarantor that gives the borrower the financial backing necessary to raise debt and is typically utilized with a corporate or municipal bond to fund any size of project or development. An insurance wrap is a financial guarantee that provides additional protection for corporate bonds or other investments. It is an insurance policy that mitigates risk. The insurance wrap protects investors from potential losses due to default, premature calls, or market volatility. An insurance wrap works by providing investors with a guarantee that they will be able to receive their principal and interest payments in the event that the issuer of the corporate bond defaults on its obligations. The insurance wrap is typically purchased by the bond issuer and is backed by a third-party insurer. The insurance wrap is designed to reduce investors’ risk of potential losses. The primary benefit of an insurance wrap is that it provides additional protection for investors against potential losses due to default, premature call, or market volatility. By providing a financial guarantee, an insurance wrap helps to reduce the risk of loss for investors. Additionally, an insurance wrap can also provide investors with additional comfort and confidence in their investment. In conclusion, an insurance wrap is a financial guarantee providing additional protection for corporate bonds or other investments. It is an insurance policy that offers investors an extra layer of risk mitigation. Example #1 At times the lender may like the project and/or developer, but feels a bit insecure in the ability of the sponsor to pay the note. Could be due to extended ramp up period, retarded steady state, or anticipated market cooling.? We then wrap the mortgage with an insurance guarantee. This guarantees payment to the lender in the event of default. They are not easy to get and are expensive, but we do have a key provider that delivers for us. Example #2 We can wrap financial instruments with insurance wraps. The main benefit of an insurance wrap for financial instruments is that it can provide a level of protection against losses. It provides peace of mind for investors, as well as helps to improve the overall stability of the financial system.? However, wraps are not always available in the market; and like all financial transactions, it will depend on the insurer and the type of financial instrument.

Project Financing

??Executive Summary ??Pitch Deck ??Sponsors Bio ??Net worth statement of Sponsors. ??Professional Team Bio ? Development Cost schedule ? 5/10-year pro-forma based on the term of the facility required. ? 3 Years audited financials. ? As is appraisal on the asset. ? Sponsors injection into the project ? Use of Funds of the requested facility ? Zoned ? Permitted ? Up to-date Feasibility and Market studies executed.