Conduit financing

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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

Other resource