CAP Funding Guarantors

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).

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

For an encapsulation, see 1-page Overview for Guarantors.

Register your interest with just your most basic info here

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.