Inventory funding update31 Dec 2020 13:01
Hi all,
Up to now, SYME reported 3 x separate funding arrangements (as at 30 November) :
(1) 'Open Funding' note programme managed by Storm Harbour SH; to be completed before year-end and funded by an Inventory funder .
(2) Captive funding : Quadrivio and its Captive Bank
(3) Self-funding : 2 x Italian FI's, both expected to develop synergies with Captive Bank, 1 specifically an insurance product.
From today's RNS , we learnt that progress re development of an Inventory Monetisation asset class ..." now enables SYME to programme a series of securitisation issuances that, together with cornerstone investment from its Captive Bank operation, should provide access to a deeper, ongoing pool of capital, facilitating the provision of the inventory monetisation service across several active geographies..." and that
SYME is negotiating a wider securitisation with the Inventory Funder , hopefully leading to an Inventory Monetisation programme for the whole of 2021; SYME expects that this "size-increase" combined with a more flexible funding structure would allow the Platform to monetise its entire current portfolio of eligible Client Companies across a series of securitisation rounds; while there'll also be
.. a widening of discussions relating to Quadrivio's involvement in all securitisation issuances, via the Captive Bank."
It now appears that the plan is for there to be a primary source of funding - the "Inventory Funder" - and a greater role for the Captive Bank in ALL securitisation issues.
My questions :
(1) Where does the Industry Funder (defined term) fit in the IM programme/structure , relative to the individual SPCs ? And what exactly is it funding, since it's supposed to be the buyers of the security notes that are doing that ?
(2) How does the timing of acquisition [ + re-capitalisation + staffing/ systems upgrading etc] of the Captive Bank (during Q1 2021, AIUI) tie in with "the time-table of the eligible Client Companies to execute their individual inventory monetisation transactions " ?
We're only told that .."The Company expects to make these disclosures within the next month once the Inventory Funder confirms its release from the non-disclosure agreement or as required by market disclosure regulations...".
GLA and Happy New Year.
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