
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.