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Canadian UBO Lombard Financing

13th October 2021
HEAD OF SECURITIES-BASED LENDING

Zara Akbar

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High Value Lombard Loan
Zara Akbar
HEAD OF SECURITIES-BASED LENDING

Zara Akbar

Key Facts: 

  • Client: Canadian UBO
  • Shares: Shares listed on NASDAQ
  • Loan Amount: c. $5 Million
  • Loan to Value: 50% LTV
  • Interest Rate: 3.15% pa

A Lombard Loan is the practice of using marketable securities or other financial instruments as collateral for a loan. As a recent case highlights, lombard loans can be ideal if you want to respond to an unexpected opportunity but don’t have the capital you need available in cash.

In this case, a Canadian UBO approached us wanting to diversify his existing asset position and raise liquidity for future property purchase and domicile within Europe. We knew a Lombard Loan would be the perfect solution in this case, allowing the client maintain the long-term benefits of security ownership, all while accessing the capital he needs.

The client's shares were listed on NASDAQ with a market cap of $130 Million and an average daily trading volume of circa $10,000. With that in mind, we approached multiple lenders and we were able to source a very cost effective solution for our client. 

At Enness, we have relationships with a wide range of lenders that offer Lombard Loans and can facilitate these agreements on behalf of clients. We always source the best pricing and terms from the market tailored to the individual circumstances of the customer. 

Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.

Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.