$15 Million Single-Stock Loan for a Korean Listed Company


Zara Akbar

Luxury office space
Zara Akbar

Zara Akbar

Key Details:

  • Korean-listed company
  • The company has a market cap of USD 100 m +
  • Financing requirements: Circa $15 m
  • Terms offered: 5-year term 

In this case, we assisted a Korean-listed company in securing a non-recourse, single-stock loan for further investment and growth opportunities.

The shares were held in an offshore company, with the UBO as one of the company's employees. The UBO is an entrepreneur holding numerous board positions in several listed companies. Their wealth was predominantly held in this stock listed on the Korean Stock Exchange. Another classic case of a single stock loan utilised by a company to raise additional liquidity for growth at competitive loan terms. The equity formed part of the lender's portfolio for the financing term, but the borrower retains all beneficial ownership and upside from the asset upon completion of the financing term.

Single-stock loans allow shareholders to keep their long-term investment plan on track, so they will receive the dividends, interest or capital appreciation that may accrue. The benefits of securities-backed finance include:

  • Liquidity to pursue your existing investment strategy and investment opportunities
  • Additional capital without selling securities
  • No interruption to your asset allocation and long-term investment strategy
  • Credit lines/loans structured according to your individual needs with regards to type, amount, tenure, repayment and currency
  • Portfolio yield enhancement

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