CERTIFICATE OF THINGS
Private debt financing

GENTWO offers a new option for financing; We call it: “Certificate of Things”.
Are there more attractive options for the financing of a new machine than a bank loan or private loan? We think so! Moreover, this is true for both the borrower and the lender.

It for example, a chocolate factory wishes to acquire a new packing machine worth CHF 3 million, we can set up a certificate that compensates investors in the form of a variable coupon for each chocolate packed. The transaction is processed via a issuance vehicle set up quickly and inexpensively by us and a certificate issued by it with a Swiss ISIN. In this way, investors can invest very easily as with a normal bond or a structured product.

So the factory is then not only an applicant for a loan but also provides an attractive service. With the investors having a stake in the machine’s output, the certificate, in fact, corresponds to a direct investment in chocolate production.

We call this “the Certificate of Things”. Because like the “Internet of Things”, in which information from physical devices can be used, in this way the capacity utilization of production plants can also be used as an investment.

With this solution from GENTWO, an asset manager can, therefore, enter new fields of business and create added value for its clients from its network and can do so flexible, quickly and inexpensively.

Financing Options

 
Borrower (Factory)
Investor
Bank Loan
+ Relatively quick
+ Standard procedure
+ No legal cost
- Highly inflexible
- Banks put up a lot of rules and is strict on breaches
- Likely that the bank could call the loan






Peer to Peer
+ No bank needed
- Needs to find investors or pay a introducer
- With every investor there will be a contractual relationship
- Complex legal work
+ Faces directly borrower
- Complex legal work


Raise Equity
+ Small fix refinancing costs (compared to interest payments)
+ Bind investor to company
+ Long term bonded capital
- Dilution of existing shareholders
- Quite a lot of contractual work
- Investors can vote in AGM
+ Potential higher return
+ Voting rights
- More risk
- More volatile returns
- Dependent on dividend policy of company
- Selling of investment difficult
Issue Bond
+ No shareholder dilution
+ Long term financing
+ Clear payment schedule
- Inflexible fixed coupon
- Need to do a prospectus
- Expensive
- Usually not attractive for < 50 million
- Management of withholding tax
+ Fixed interest rate
+ Clear visibility of credit risk
+ Less volatile returns as with equity
- Withholding tax
- No asset-backing/collateral possible
- Company credit risk
- Selling of investment difficult

GENTWO Solution

Certificate through your tailor-made issuance vehicle

Borrower (Factory)
Investor
+ Various payoff possibilities
+ No prospectus needed
+ Low cost
+ No withholding tax
+ For almost any size possible
+ Various payoff possibilities
+ Less credit risk (due to pledge on the machine)
+ No withholding tax
+ Transferable security (CH-ISIN)

Set-Up

Private debt financing

Case Studies

HOTEL PROJECT FINANCING Private Loan Securitization
Private Loan Securitization

How to unleash a network effect by securitizing a loan

Learn More
INVESTMENT PORTFOLIO Your Dedicated AMC Platform
Your Dedicated AMC Platform

Instantly create an AMC offering for existing and new clients

Learn More
INVESTMENT PORTFOLIO AMC On Structured Products
AMC On Structured Products

Simplifying and streamlining portfolio management.

Learn More
INVESTMENT PORTFOLIO AMC On Private Equity & Private Debt
AMC On Private Equity & Private Debt

GENTWO offers the most flexible costeffective securitization solution for Private Equity & Private Debt investments.

Learn More