Clifford Chance

HSBC and ICG close groundbreaking $240 million capital call facility structured as a securitisation

The $240 million capital call facility provided by HSBC is the first capital call facility structured as a securitisation by ICG and essentially has all the attributes of a more standard capital call line structure. The transaction marks a trend for increasing demand for sophisticated fund finance solutions, including embracing securitisation as a viable financing option. This groundbreaking transaction developed a methodology and structure to securitise the fund’s exposures to investor capital calls, progressing the market in the use of securitisation technology in fund financing transactions whilst supporting the Fund’s objectives.

Commenting, Steve Burton, Treasurer of ICG said: “At ICG we’re constantly looking to innovate in the fund finance arena as the market evolves. We see this structure as a key product in accessing liquidity in what could be an uncertain regulatory landscape, providing cost benefits for our funds.”

Victoria Lindsell, Global Head of Structured Finance at HSBC said, “HSBC are excited to further develop our longstanding relationship with the ICG team, and to innovate in our product offering using structured financing techniques”.

The Clifford Chance London team was led by partner Kevin Ingram and associate Francis Tang with the support of trainee Kevin Toneatti. The Luxembourg team was led by partner Marc Mehlen, senior associate Marie-Elise Gueble and associate Adrien Rosier, and the New York team led by partner Jason Ewart, associate Barbara McCracken and counsel John McManmon.

HSBC were advised by Clifford Chance in London, Luxembourg and New York. Intermediate Capital Group were advised by Latham & Watkins in London and Washington DC, and by Maples & Calder in Luxembourg.