By putting in competition 12 to 15 insurers for the issuance of bonds, Solmondo negotiates and obtains the best legal and financial conditions. It should be noted that surety bonds from insurers often offer better legal security than first-demand guarantees.
For many years, Solmondo has been offering digital solutions for issuing and managing domestic bonds (to be issued in France), whether legal (customs or environmental bonds) or contractual (market guarantees: performance bonds, advance payment bonds, etc…). This makes it possible to print out at the client’s premises or to send electronically to the beneficiary the texts of signed bonds or guarantees :
- Solmondo activates competition between different insurers in order to obtain the best pricing conditions
- On the basis of the applicant’s financial statements, Solmondo negotiates the best counter-guarantee terms
- Digital management of bonds and guarantees enables real-time monitoring of outstandings and releases
- Solmondo periodically renegotiates issuance costs and other ancillary fees
- If necessary, Solmondo organizes the syndication of capacities
To issue environmental bonds, Solmondo activates competition between insurers and offers the most efficient issuing solution.
- Environmental bonds are a legal obligation
- These bonds apply to certain types of facilities and wind turbines. They are a prerequisite for bringing the installation into operation, but also in the event of a change of operator;
- They require a specific formalism;
- The amount of the financial guarantees and the actualization methods are established by the ICPE authorization order, as well as revaluations and renewals.
- The calling and the release of these bonds are initiated by the Prefect.
In order to issue domestic or international guarantees, quickly and at the best price, Solmondo puts insurers in competition to negotiate the best conditions for the applicant.
- Solmondo consults more than 10 insurers (rated A or AA)
- Competition improves the issuance prices
- Solmondo negotiates the legal conditions for counter-guarantees
- The capacities available in the facility allow the best reactivity when issuing bonds
- The capacities can be syndicated if needed
- The best fronting solution is evaluated according to costs, security and reactivity
- Outstandings are monitored through dynamic management.
A pioneer in the use of insurers to issue international guarantees, Solmondo has extensive experience in issuing bonds and guarantees in a large number of countries and advises its client to optimize synergies between banks and insurers:
- For the exporter it is important to have available issue capacities from both banks and insurers in order to benefit from optimal competition and from the most efficient local solutions for issuing bonds and guarantees.
- Solmondo advises and proposes the appropriate arrangements in accordance with the Client's obligations in the various countries where the guarantees are to be issued.
- Solmondo evaluates the solutions envisaged in the light of three criterias:
- Legal security of the issuance scheme
- Total cost of the issuance
- Expected reactivity of the issuer
Depending on the beneficiary’s country, Solmondo considers different legal issuance schemes:
- Direct issuance by an international insurer where possible
- Issuance by a local fronter (branch of an international insurer)
- Issuance by a local fronter (partner of an international insurer)
- Provision of capacity to a bank issuer within a pool
Depending on the quality of the client's signature, Solmondo can bring together significant capacities in excess of EUR 1 billion for a single guarantee.