Let’s Help You Fund Projects Through a Structured Finance Process Known as Arbitrage Trading
The Funding of Your Project Puzzle Solved By Arbitrage Trading
How do you define ‘arbitrage’ trading?
There are many definitions. At PFX we define it as: ‘Buy and sell transactions whereby the
sale is contracted prior to the asset being acquired. Thus eliminating all perceivable risks.’
What is the risk to my money?
Over the past few decades many steps have been developed to ensure that clients’
placement funds are properly protected. Much depends on how much you are placing into
your trade. PFX faces two of the world’s reputed seven genuine trade desks hosted by Tier-1
institutions but,we are happy to give you more details when we connect on the call after you have applied below.
Who Qualifies For Structured Funding
- The project total cost must be 100M minimum
- Funds that are being raised must be directed to a project.
- The project owner’s Bank must be on Swift System and be one of the top 25 Western Banks.
- The project developer or his/her corporation must show that they have a minimum 2M in cash reserves or 6M in monetizable hard assets.
- The project must be in a country that is not sanctioned
- The project owner must be willing to comply with KYC/AML requirements.
- For mining companies wishing to raise capital via arbitrage trage , we have a different mechanism that does not require any upfront fees at all. To learn more just contact our team by filling up the form below.
The Problem With Traditional Project Finance and How We Solve it Using Structured Finance.
Traditional Project Finance Requires Time and more Upfront Funding
In traditional project finance, project developers spend at least 5% of the project costs in project preparation just to turn it bankable.Even though it is still far less than what the banks would require, the time and effort to raise the 5% often makes it hard for many great projects to get over this bump and they get stuck.In structured finance that uses arbitrage trading , you may simply need 1% (if the project cost is 100M minimum) to start raising capital to prepare the project and eventually get it funded or build up enough equity to attract local banks.
Traditional Project Finance is Partially Non Recourse
In traditional project finance, the repayment obligation is limited to the project being built, so the project developer’s personal assets are protected. However, there is still a risk because of the debt financing process that requires repayment. On the other hand, when a project developer uses structured finance to raise capital, the risk is only on the funds being raised through either arbitrage trading, a managed buy/sell of bank instruments, or hard assets monetization, but not on the deposit often required to initiate this type of funding. The beauty is that the risk is minimal and often mitigated by insurance wrap. Additionally, the project developer does not have to repay a single penny when the project is built.
Traditional Project Finance Requires Due Diligence ,Underwriting and Closing Costs
In traditional project finance, due diligence, underwriting, and closing costs are a part of the process before the funding is released. These costs are usually covered by the project developer and refunded if the funder decides not to finance the project. In structured finance, banks involved in the transaction conduct the due diligence and recoup the costs through fees charged during the transaction and funding process.
We Review Your Project Plan
We help you with initial verification
