Lex Advisory offers a structurally superior alternative to traditional bank credit facilities through insurance issued paper instruments. These instruments are designed to enhance credit headroom, reduce financing costs, and diversify clients away from bank balance sheets on materially better terms.
The pricing advantage is structural, not cyclical. Banks operating under Basel IV and Basel 3.2 face significant risk weighted asset charges that increase the cost of credit instruments. Insurers, governed by Solvency II, benefit from considerably greater capital efficiency which we at Lex can bring to you.
The Structural Advantage
Banks
Basel IV and Basel 3.2
Risk weighted asset charges significantly increase the cost of credit instruments and constrain pricing flexibility.
Insurers
Solvency II
Considerably greater capital efficiency, enabling materially lower cost structures and enhanced flexibility for clients.
The Solutions We Deploy
Our suggested solutions are long dated and tailored to the specific requirements of each client and transaction.
| Solution | Description |
| Long Dated Letters of Credit | Flexible, long term credit instruments supporting project financing, contract performance, and regulatory obligations on terms the banks typically cannot match. |
| Deferred Equity Guarantees | Bespoke guarantee structures protecting deferred equity obligations across private equity and infrastructure transactions. |
| Performance (On Demand) Bonds | Unconditional credit support equivalent to three day money, providing immediate assurance for project sponsors and counterparties. If you can extend past three day need can be even more cost efficient. |
Key Benefits for Your Business
- Materially enhanced credit headroom
- Lower cost than equivalent bank issued facilities
- Reduced concentration risk on bank balance sheets
- Diversified sources of credit support
- Optimal coverage for your capital programmes
- Strengthened enterprise value and investor confidence
Sectors We Serve
These instruments have been most effectively deployed across:
• Power
• Construction
• Renewable Energy
• Data Centres
• Pharmaceuticals
• Large Corporates
• Publicly Listed Enterprises
• Mechanical and Engineering
Track Record
Lex has an established track record with leading counterparties, including Mainstream Renewable Power. We are pleased to share references and case studies that demonstrate the tangible, measurable benefits our clients have achieved through these structures.
Richard M. Henry
Contact our team to explore how insurance issued credit instruments can strengthen your capital programme.
MFSA Financial Services Register Reference Number (Authorised Person ID) JTCLEX-10570