- Client: Dutch National, Canadian Resident
- Security: Publicly listed shares
- Security Value: C$4,560,000
- Loan Amount: C$2,872,800
- LTV: 63%
- Term: 24 months
Enness was approached by a Dutch national and Canadian resident who was looking to raise liquidity against publicly listed shares. The client was an experienced entrepreneur who had co-founded two publicly traded companies in Canada and the United States, with a background in launching businesses in emerging markets.
The client wanted to raise as much capital as possible against their shareholdings and place the proceeds with a private bank as assets under management (AUM). The intention was for the private bank to use this wider relationship to provide mortgage finance for a residential property purchase.
The structure presented a challenge because the client’s shares were listed on smaller exchanges rather than major global markets. One company operated in the decentralised finance sector and was listed on the NEO Exchange, while the second was focused on electric vehicle technology and was listed on the Canadian Securities Exchange, with plans for a future NASDAQ listing.
Smaller exchange-listed securities can be more difficult for lenders to consider as collateral, particularly where the borrower is seeking significant liquidity. Enness was able to look beyond the size of the exchange and identify a lender with the specialist appetite required for the transaction.
We successfully sourced a facility providing C$2,872,800 against the listed securities, representing 63% LTV over a 24-month term. This gave the client access to significant liquidity without requiring an immediate sale of the underlying investments.
The structure allowed the client to retain their shareholdings while creating capital that could be used to establish the intended private banking relationship. It also demonstrated the potential for securities-backed lending to support wider financing objectives where conventional lending may not be suitable.
Enness works with international borrowers seeking liquidity against a range of listed securities, including shares traded on smaller exchanges. Where appropriate, we can also explore specialist share-backed lending and private banking structures tailored to the client’s wider objectives.
To discuss your requirements, speak to a specialist.
Risk Warning:
Securities-backed lending carries risks. The value of shares and other securities can fluctuate, and a fall in the value of the collateral may result in a lender requiring additional collateral or repayment. If you do not meet the terms of the facility, you may lose some or all of the pledged assets.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal or tax advice. Finance is subject to status, underwriting, collateral suitability and lender criteria. Enness does not provide advice on securities-backed lending or investments, and lender introductions in this area are unregulated. Terms and availability will vary depending on individual circumstances.
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.
Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
