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Corporate Credit

Project Real Estate Financing

Project financing
  • Loans made against assets and income generated by them, debt paid back from cash-flow generated by project
  • Factories, manufacturing equipment, infrastructure etc.
  • Loan period shorter than useful lifetime of assets
  • Choice of currency reflects project’s cash-flow
Real estate financing
  • Loans made against real estate
  • Longer loan period and higher mortgage ratio in cases of regular income from real estate Loans made in ISK or foreign currency
Financing during construction period
  • Loans made against assets created during construction
  • Loan period is generally short
  • Loans chiefly in ISK

Securities and Aquisitions Financing

Securities financing (margin loans)
  • Arion Bank has offered such loans for years, backed up by either Icelandic or international securities
  • Clients granted loans to buy shares and/or bonds
  • Loans only granted for listed securities
  • Collateral in securities purchased
  • Loan period up to 3 years
  • Loans made in ISK or foreign currency
Acquisition financing
  • Arion Bank can arrange financing in connection with the following:
  • Management takeovers, whether it be MBO or MBI
  • Financial restructuring
  • Restructuring of companies
  • Buying and selling of corporate units
  • Financial restructuring based on cash flow or assets
  • Mezzanine financing, bond issues as well as general term loans

Working Capital Facilities

Overdraft loans
  • Suited to accommodate short-term fluctuations in operations
Revolving capital facilities
  • Suited to finance outstanding receivables collected via Arion Bank’s collection system
  • Loans made against outstanding receivables
Factoring
  • Purchase of commercial bills and commercial bonds, sales receipts and instalment agreements with credit card companies 

For further information contact Corporate Services.