Credit Enhancement Letters of Credit for Commercial Real Estate, Solar, and Infrastructure Projects
Credit Enhancement Letters of Credit for Commercial Real Estate, Solar Projects, and Infrastructure
1. Funding Roadblocks
Developers hit loan-to-value caps, power producers face offtakers who demand stronger balance sheets, and public-private concessionaires see bids rejected because bond ratings fall short. Traditional equity is scarce and expensive. Without extra credit comfort, deals stall and timelines slip.
2. How a Letter of Credit Fills the Gap
A credit enhancement Letter of Credit (LC) places a bank’s commitment behind the project. It assures lenders, landlords, and counterparties that obligations will be met even if the sponsor misses a milestone. The LC can backstop:
- Construction payment guarantees for commercial real estate builds
- Debt service reserve coverage for solar PV portfolios
- Performance bonds for toll roads, data centers, and water treatment assets
3. Financely’s Role
Financely is a boutique investment banking advisory firm. We arrange ISP98 or UCP 600 compliant LCs via regulated banks for qualified sponsors. Where securities are involved, transactions flow through our chaperone agreement with a licensed broker-dealer to keep everything above board.
- Ticket sizes from USD 15 million
- Tenors aligned with construction or operating phases, up to 5 years
- Flexible draw mechanics tied to independently verified milestones
- Option to convert LC support into term funding once assets stabilize
4. Engagement Steps
- Initial review – Send project information memorandum, financial model, and EPC or lease agreements.
- Mandate – Sign advisory letter and fund work budget covering legal, credit, and rating analysis.
- Underwriting – Issuing bank completes KYC, reviews cash flows, and sizes the LC.
- Draft confirmation – Sponsor, beneficiary, and bank agree on wording and expiry profile.
- Issuance – LC delivered via SWIFT MT760, beneficiary acknowledges, construction proceeds.
5. Use Cases by Sector
- Commercial Real Estate – Replace costly parent guarantees with a bank LC, freeing equity for the next project.
- Utility-Scale Solar – Cover inverter replacement or output shortfall covenants so that senior lenders price tighter.
- Transport and Social Infra – Satisfy concession requirements for maintenance and hand-back obligations.
6. What to Watch For
- Unnamed issuing banks or vague “top 25” claims
- No provision of a specimen draft showing governing rules
- Promises of instant delivery with no compliance checks
Need a credit enhancement LC to unlock funding? Share your project dossier and receive a clear path to issuance from our partner banks.
Request LC AdvisoryFinancely Group is not a bank. We provide structuring and advisory services. Where securities are marketed, placements are carried out through our broker-dealer chaperone. All engagements require KYC and an advisory retainer. Final issuance depends on bank credit approval and executed documentation. Misrepresentation may lead to termination and reporting under AML and CTF regulations.
Get Started With Us
Submit Your Deal & Receive a Proposal Within 1-3 Working Days
Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.
All submissions are
promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.
Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.
Trade Finance
Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address the challenge of global transaction risk through structured strategies that foster cross-border growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.
Submit a RequestProject Finance
Access non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.
Submit a RequestAcquisitions
Secure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.
Submit a RequestFor Banks
Financely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.
Submit a RequestOnce we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.
Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.
