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- Use Case
- Project Finance
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- Real Estate
Financing a real estate project
Benjamin Spring
Securitize a low-volume loan backed by collateral and enable the certificate to be sold to multiple investors.
Advantages
Borrower
- Various payoff possibilities
- No withholding tax
- Feasible for low amounts
- No dilution for existing shareholders
Investor
- Various payoff possibilities
- Less credit risk (due to pledge on property)
- No withholding tax
- Trustee realizes the collateral in a credit event and pays the proceeds to the issuance vehicle