Our financing solutions combine securities services with banking solutions to offer the financing that adapts best to our clients’ business requirements.
Our Financing offer
For banks and brokers, we offer solutions that maximise the use of securities while maintaining access and movement to cover trading obligations. Our clients benefit from global credit facilities to cover funding needs across the world including failed settlements and on-exchange margin calls.
We are also a global player in Fund Finance, with sector specialists across alternative and traditional asset management. You can count on our 15+ years of experience across Private Equity, Hedge Funds and Collective Investment Schemes (including UK investment trusts and 40 Act funds). We offer operational excellence by integrating our financing solutions in treasury, custody and administration, supporting life-long client relationships.
As a BNP Paribas client you will be able to rely on our balance sheet and access support from financing experts across the globe with presence in EMEA, APAC and North America.
Additionally, we support the integration of ESG mechanisms in your financing facilities. BNP Paribas has been one of the first movers in this space and has gathered considerable experience in sustainability-linked loans (SLLs). At the end of 2022, we ranked 3rd in the world and first in Europe with €26,4 billion in SSLs (source URD 2022).
Our Financing solutions include:
Pledge based cash financing is a committed cash financing line secured by a first ranking pledge over the client’s assets held in custody with us. This type of financing is suitable for investment and liquidity management for both sell-side and buy-side clients.
Two financing models are available:
- Revolving credit facility
- Committed overdraft facility
Our Pledge Based Cash Financing provides the following advantages:
- Assets in custody as source of additional liquidity
- Stable financing terms and high flexibility in usage
- Asset safety with no transfer of ownership and no reuse
- Answer to regulatory liquidity needs
- Wide pool of eligible collateral
BNP Paribas offers equity bridge facilities (EBF), also know as subscription lines or capital call facilities to funds that have a capital call mechanism, in the form of revolving facilities granted at fund or Special Purpose Vehicle (SPV) level and secured by uncalled limited partner commitments.
Our Capital Call Financing solution allows for:
- Fast access to capital due to shorter lead times; accelerates investment closing
- Certainty of funds (e.g. during the auction process)
- Alignment of limited partners’ interests
- No need to maintain a cash buffer within the fund
- Access to letters of credit
In addition to Capital Call Financing, our Fund Financing Group platform is providing:
- NAV Financing
- Share Based Financing
- Other specific solutions (GP Financing, Guarantees for public tenders…).
Our Fund of Hedge Fund Financing solution is made for multi managers investing in hedge funds. It takes the form of a revolving credit facility and is suitable for portfolio rebalancing, redemptions, FX settlement, fee settlement and leverage. The solution is available for clients in custody with us and also for clients in custody with approved external third-party custodians. It comes with:
- Security: first ranking pledge over the custody account (no title transfer)
- FX forward transactions covered by the credit line: no initial margin nor variation margin required, no drawdown costs until settlement
- Full transparency on credit scoring and monitoring of underlying hedge fund holdings with daily portfolio oversight by our client services team
- A sophisticated web-based tool (FundWeb under NeoLink) with a comprehensive suite of trade order management, liquidity forecasting, accounting, investor and regulatory reports