FORNAX CAPITALHOW WE WORK
Fornax works with DEVELOPERS, helping them find alternative financing solutions which meet their needs.
While Danish real estate developers traditionally turned to banks for financial support, tighter regulations and system reforms have made it more challenging for them to access bridging finance prior to mortgage funding being made available.
This has created a gap in the market and made it necessary for companies to seek different ways of borrowing the money they require.
At Fornax, we work with our partners to secure the funding they need to turn their plans into a reality.
We achieve this by way of a fixed income bond issue, secured against the assets associated with each development.
FORNAX CAPITALWHAT IS PROJECT FINANCING
Project financing is an effective way of securing the funding needed for a specific plan or development. Fornax works with a number of financial partners, usually including a syndicate of banks and other institutions, to sponsor both industrial projects and property developments.
With project financing, companies are usually given a non-recourse loan, secured against the assets of the project, including any contracts which will create revenue. In the unfortunate event of a company being unable to comply with the terms of the loan, Fornax would be able to take over control of the project.
This financing solution is based on the projected income of the project being sponsored rather than the balance sheets of the businesses involved. This makes it a potentially beneficial arrangement for small and medium-sized businesses with ambitious plans for growth. At Fornax, we view this arrangement as a partnership and can help our clients work out the best way forward for the future and create a financing solution which serves the requirements of everyone involved.