Collateral

Project funding through the institutional channel begins with bankable collateral. The page below states the floor, the cap per project, the acceptable forms of collateral, and the path for sponsors who do not yet have collateral in hand.

The institutional minimum: $150 million

A minimum of $150 million in bankable collateral is required for project funding through the institutional channel Magister Operis works with. Below that floor, the institutional cost stack cannot be efficiently structured.

Per-project capacity: up to $4 billion initially

For qualifying projects, the Institution can fundraise up to $4 billion initially per project. Particulars — structure, sequencing, and terms — are documented in the SPV operating agreement and negotiated bilaterally between the funder and the UBO of the collateral and/or their counsel.$20 billion projects can be funded simply by repeating the same program that raised $4 billion initially. 

Smaller projects can be packaged within larger funding transactions

Projects of less than $150 million can be folded and packaged within funding transactions that have at least $150 million in collateral.

Acceptable forms of bankable collateral with at least 150M LTV

• Cash (Funder can securitize cash with top rated securies eliminating risk for the cash owner)
• Standby Letters of Credit (SBLCs)/Bank Guarantees (BGs) issued by A-rated in investment bank in USA, Canada, EU, Singapore, South Korea, or Japan.
• Listed securities including Medium Term Notes (MTNs), treasuries, and petro bonds
• Gold and other precious metals, assayed, and under bank or Swiss Safe Keeping Receipt (SKR)
• Gemstones, GIA-grade certified, and under SKR in Switzerland
• Audited real estate equity in jurisdictions with strong municipal property controls (Africa is unacceptable)
• Audited business equity
• Corporate Medium Term Notes (MTNs) backed by strong collateral
• Sovereign guarantees issued by a government central bank

If you do not yet have collateral

Some project owners arrive with a sound project and a host nation that welcomes the investment, but without $150M+ of bankable collateral in hand. Two paths are available.

Do-it-yourself. Project owners can approach national and/or multinational corporations operating in the host nation. 

SAMPLE IRON ORE FUNDING REQUEST

A) SELLER BRINGS COLLATERAL

Machinery manufacturers wants to sell millions of dollars worth of machinery to mining operations.

Machinery manufacturer brings the collateral.

The machinery manufacturer sells millions of dollars' worth of machinery to the project and receives a healthy amount of equity in the project for bringing the collateral to a project that has value far in excess that of the collateral amount. .

Machinery manufacturer receives collateral back free, clear, and unencumbered, meaning ultimately nothing invested, yet holds significant equity in the operation. Everyone wins.

AND/OR

B) BUYER BRINGS COLLATERAL

Steel manufacturer wants to purchase millions of dollars worth of iron ore from the mining operation.

Steel manufacturer brings the collateral.

The steel manufacturer buys millions of dollars' worth of iron ore from the project and receives a healthy amount of equity in the project for bringing the collateral to a project that has value far in excess of the collateral amount. 

Steel manufacturer receives collateral back free, clear, and unencumbered, meaning ultimately nothing invested, yet holds significant equity in the operation. Everyone wins.

Retain Magister Operis. Magister Operis can be engaged, on retainer, to lead the search for and qualification of $150M+ of bankable collateral on behalf of a sponsor. Magister Operis will use its research, communication, professional document production skills, social media accounts, and industry relationships to present the opportunity to the potential collateral provider in a manner that outlines the project and the benefits to these corporations in bringing forth their collateral into a highly managed funding mechanism that is run by former bankers and accountants that are supported pro bono by some of the most elite global accounting and law firms.  

These transactions can be very beneficial to multi-national corporations that have a "social contract" promising to give back or invest back into a nation and/or the nations communities. The collateral can used to raise significant funds for a variety of projects that benefit all parties involved without any funds from the collateral provider being spent on the projects.