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)
• Listed securities includingMedium 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
• Standby Letters of Credit (SBLCs)/Bank Guarantees (BGs) issued by A-rated in investment bank in USA, Canada, EU, Singapore, South Korea, or Japan.
• 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 sponsors 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. Sponsors can approach multinational corporations operating in the host nation. Those corporations sometimes hold local currency or local assets they would prefer to deploy productively, and the right introduction can occasionally surface a participation arrangement.

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. The engagement covers identification, vetting, and documentation through to the point the collateral is presentable to the institutional partner.