Conduit financing

Conduit financing involves a "conduit" company raising funds in debt capital markets, for use by a parent company or another related enterprise.

The issuance into the debt capital market is often secured against a related income stream from the parent group.

BAE Systems conduit financing

"The [BAE Systems treasury] team... also closed a $201.4m structured conduit financing to fund a new shiplift facility.

This involved the issuance of amortising 30-year notes into the US private placement market, secured against a stream of lease rentals from BAE Systems Ship Repair."

ACT Deals of the Year Awards 2023: Large team of the year winner.

See also

• Amortising
• Conduit
• Debt capital market (DCM)
• Enterprise
• Facility
• Group
• Issuance
• Lease
• Notes
• Parent company
• Private placement
• Securitisation
• Security
• Special Purpose Entity
• Structured
• Structured finance

Other resource

• ACT Deals of the Year Awards 2023: Large team of the year winner - BAE Systems