Accredited Asset Owner Offer

This page is for prospective guarantors to better understand how CAP funding can be used to realize substantial returns from a securitized position. This outline provides a starter kit to guide decision-making. Please register to request our full prospectus.

Backing secured CAP-funded impact project new construction leverages available assets with minimal risk and substantial upside

In3 Capital seeks additional partners willing to provide a partial, short-term guarantee in exchange for substantial financial compensation (generally $1M+ per year for a 1 to 3-year commitment).

Watch a 2-minute "teaser" video featuring a breakthrough waste-to-value opportunity

For an encapsulation, see 1-page Overview for Guarantors or IGF Press Release

Register your preliminary interest with just your most basic info

Six optional, additional questions for more tailored offerings

How it starts:  A) First we want to understand the types of projects and geographic locations that appeal to you most.
B) Second, we would provide the fundamentals for a sample project or portfolio of projects and discuss terms and timing of cash payments.
This typically includes the proposed funding structure, project's total budget, guarantee portion (or range), involved stakeholders, insurance coverage, banking protocols, financial upsides, risks and timeframes.
C) Finally, we would exchange paperwork such as an MOU or indicative term sheet, wording of a potential agreement, or other documents in meetings upon request.

How guarantees are secured:  Under the terms and conditions of this arrangement, even in the unlikely event of developer default, the sponsoring guarantor is in a no-lose situation. Worst case entails owning a compensatory portion of the project's cashflows.

Upside:  The more likely case is return-on-assets borrowed and pledged as completion assurance around 6% per year the instrument is operative, or as negotiated (paid annually or over time) with additional risk-adjusted benefits available of a case-by-case basis such as tax equities, carbon credits, etc.

How it works:  In essence, per the above structure, sponsors that are satisfied with the proposed arrangement take three simple actions, in cooperation with In3 and/or the project developer(s):

1. Decide what particular project or portfolio will be sponsored (select from what is already vetted and investor-ready) or propose the type(s) of projects and location(s) preferred.  This was initially discussed per ABC of "How it starts," described above.

2. Agree to sample wording of the guarantee instrument (or adopt ours), face value, duration ("maturity date") and issuing bank -- most often a Standby LC (Word format template) -- with nothing binding at this stage.  We will help arrange a short-term guarantee as a bank-to-bank transaction, which can be verified by requesting either an RWA letter or Authorization to Verify (ATV) letter with the involved banker(s) to signal their intent to later deliver the instrument via SWIFT once under contract.

Nothing is binding at this point -- this step offers a way of checking that the issuing bank is on board so the parties can proceed with reasonable certainty of success.  This saves everyone time and trouble.

3. Enter contractual arrangements with In3 and the client per the term of the guarantee(s).  The guarantor gets paid by In3's capital partner or by the client's Special Purpose Vehicle (SPV) bank account, pre-arranged per agreed-upon terms.  The guarantee is allowed to expire upon project delivery, called Commercial Operation Date (COD) and is removed.

That's it!  Guarantors will have the opportunity to review and approve at various checkpoints. Just as with conventional project finance, the respective parties gain consent to fulfill all proposed arrangements.

Working with In3 Capital to secure CAP Funding Guarantors

In3 only works with experienced project development teams that we know and respect.  In3 offers a premium service for gaining sponsors when these teams qualify, using the highest standards of efficacy, following rigorous vetting.  Projects must have extremely low commercial risk, rock solid business plans, above-average IRRs, top EPCs or other contractors with completion/performance bonding, etc., to enter an In3 Management Services Agreement for this representation.

Most developers will prefer to facilitate their own project's guarantee, but for those that qualify, CAP funding offers a novel structure that must be explained properly to gain support from third party guarantors that are not involved as stakeholders.  Here's a checklist of our basic criteria:  1-page PDF

In3 Completion Assurance Program (CAP funding)

CAP funding sponsorship offers new opportunities to leverage non-cash assets, preserving and generating additional cash liquidity, delivering positive social and/or environmental impacts.

Here is a self-guided tour of CAP funding's logic, advantages and protocols. We highlight how guarantees can be structured as a "no lose" proposition, and are quite safe and secure.  Worst case results in the guarantor owning substantial carried interest.

Follow the links below to learn more.

Deciding which CAP type of guarantee can be used - learn more

A "hybrid" structure for lenders who wish to enhance their returns at lower risk, explore

Introducing the Impact Guarantee Fund (IGF) and the role of a "Completion Assurance" guarantee used to finance new sustainable infrastructure projects, more

Most widely-used instrument (BG/SbLC) asset options:

Learn about URDG ICC 758

Completion Assurance Program (CAP funding) has been used for Project Finance worldwide since 2016.

Intro to URDG

About In3 Capital

In3 Capital Group has been in business since 1996, one of the original firms to focus on project finance for renewables and impact investing.  Since that time, we have gained the trust and respect of capital partners in the US and overseas, working in markets that make a difference for people, improving lives, and the planet, aimed at solving gnarly problems like climate change.

Learn more

Testimonials

"This expansion will create up to 350 additional jobs in rural Mexico. It has been a pleasure working with you and your team, and it is clear in hindsight your preparation work and responsiveness was key to gaining lender interest and approval. After the preparation, the loan due diligence went quickly, and your assistance was timely and professional. In3's advisory, guarantee facilitation, and consulting services were greatly appreciated throughout.  I am happy to recommend In3's services to others seeking long-term project financing.  Thank you!"

Rusty Brown
President
Fine Dried Foods International

Daniel at In3 Capital is brilliant, energetic, devoted and a joy to work with. He is passionate in making the world a better place through advancing the knowledge and enthusiasm for sustainable technology and practices.

I highly recommend Daniel if you want to get something done beyond your expectations.

Hina Pendle

LinkedIn

Discover how short-term, non-cash guarantees can yield cash payout(s) to reach more closings and scale the impacts

Got questions? Set up an intro call

Our CAP financing structure is initially hard for experienced Project Finance professionals and even some bankers to grasp because it employs innovations meant to make securing capital more predictable. Although we use well-proven rules and tools such as Uniform Rules for Demand Guarantees (ICC 758, 2010 edition) and customary Brussels SWIFT, CAP is probably unique in the market.  Discussion will help.

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