AIS manage a Guarantee Bonds facility in Australia on behalf of a Lloyds Syndicate.
Our primary focus is replacing the traditional mezzanine finance level on a Construction Finance Facility where we will generally take a line of up to $10,000,000 or occasionally higher. Operationally we provide a bond to your Senior Debt Provider from Lloyds of London.
They provide funding to you at their usual LVR then they lend dollar for dollar against our Bond at their usual risk margin.
The net effect is the combined cost of this layer of debt can be cheaper than traditional mezzanine finance. And we don’t charge any of the profit fees, line fees, valuation fees etc. which mezzanine funders impose.
Under this Lloyds facility AIS also provides bonds for other construction activities such as EPA Guarantees, Utilities Guarantees and the like. The only area we can’t consider with this facility is the traditional construction retention bonds, where AIS has access to all the usual insurers.