
Structuring Bank
What is the role of a Structuring Bank in a financial transaction?
A Structuring Bank plays a central role in Structured Finance transactions which are by nature complex and require multidisciplinary expertise—financial, legal and tax.
These operations include:
- Acquisition Financing and LBO Transactions
- Project Finance and Asset Finance
- International Trade Finance
- Securitization Transactions
The Structuring Bank supports the client upstream, before execution, to build the most appropriate financial, legal and tax architecture for the transaction.
1. Strategic Financial Advisory
Based on a detailed analysis of Cash Flows, Debt Capacity, Financial Risks and expected market conditions, the Structuring Bank recommends:
- The right financing instruments and their calibration;
- The security package expected by lenders;
- The optimal legal and tax structure, together with legal counsel.
2. Optimizing the financing
This high value added support allows the client to:
- Secure a more efficient financing structure;
- Reduce the overall cost of funding;
- Present a transaction aligned with lender expectations;
- Increase the likelihood of a successful syndication.
3. Participation in the financing
The Structuring Bank may:
- Participate directly in the financing;
- Receive a structuring fee ;
- Earn a margin on the portion of the financing it provides.
Examples of transactions where Societe Generale acted as Structuring Bank
- Supporting the largest refinancing of the year in the French renewable energy market
- Financing the sustainable modernization of Beauvais Airport in France