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