Special Purpose Vehicle Finance
Ganar Limited helps secure SPV project finance from top banks & financial institutions in Gulf regions including Dubai and Qatar – enabling better risk management and financial structuring.
What is a Special Purpose Vehicle?
A Special Purpose Vehicle (SPV) is a separate legal entity or a subsidiary created by a parent company to meet specific objectives. For example, organisations may form an SPV to meet a particular financial goal, such as funding an asset, investment, or project. SPVs are also common for capital pooling, risk isolation, asset transfer, or off-balance sheet financing in Dubai and Qatar.
At Ganar Limited, we help organisations secure Special Purpose Vehicle finance, without the need for company accounts. The SPV loans can be used for a wide range of business purposes, such as project financing, property investments, acquisitions, etc. We have exclusive access to a large portfolio of financial products from top banks & institutions, ensuring access to funds crucial for success in this fast-changing business environment.
Key Uses of SPV Project Finance
SPV loans are typically used for project financing, property investment, or development – providing quick and short-term financing while minimising financial risks for other assets of the parent company. To put it simply, the Special Purpose Vehicle structure isolates the particular loan from the borrower’s primary company and personal assets.
By partnering with us, you can use Special Purpose Vehicle finance for a wide range of purposes:
Property Investments
We help secure SPV loans from top banks and financial institutions, allowing you to quickly make property investments, especially where traditional financing options are too slow or the purchase is time-bound. Here, the SPV owns the property as a separate legal entity from the parent company and issues securities against funding in the form of sale proceeds or rental income.
Commercial Property Acquisition
We work closely with our clients to understand their unique financial needs and provide SPV loans that can be used to acquire commercial properties. It aids in flexible financing, particularly where traditional loans may not be suitable.
Project Finance
Special Purpose Vehicle project finance is one of the most common uses of our funding, allowing companies to raise capital for a particular venture at more favourable rates. Lenders in Dubai and Qatar are more willing to provide large amounts of funding for SPV project finance because their risk is limited only to the project’s future revenue streams and cash flows, and not the creditworthiness of the parent company.
Property Development & Renovation
Developers often use Special Purpose Vehicle finance to fund major renovation projects or for “development exit” financing. This allows them to complete the property development or renovation project and then repay the loan using the sale amount or from a long-term mortgage.
Off-Balance Sheet Financing
Large companies use SPV project finance to keep the debt & liabilities associated with that particular project off the company’s balance sheet. This aids in effective financial structuring, especially for reporting purposes.
Joint Ventures
If you are collaborating with another company or entering into a joint venture, taking an SPV loan can help fund the process with ease. The SPV manages the shared ownership, profits, and liabilities of the joint venture, simplifying contractual engagements and governance.
Company or Asset Acquisition
SPV finance that we help secure can also be used for acquisitions, where a parent company creates a Special Purpose Vehicle to acquire a specific asset or company. In such cases, the fund is secured by the collateral or cash flows of the acquired asset or company, helping mitigate risks for the parent company.
Raising Capital
With a Special Purpose Vehicle finance, parent companies can raise capital for various business purposes and at a more favourable rate. This is because the credit rating is determined based on the quality of the assets held by the SPV, and not the parent company’s overall financial health.
Ganar Limited SPV Finance – Services We Offer
We have 10+ years of specialised knowledge and expertise in providing tailored solutions to structure and manage Special Purpose Vehicle project finance for businesses across Dubai and Qatar. Our services include:
Financial Structuring
Our team of experts will help structure your SPV’s debt and equity, and identify potential funding sources – banks, government bodies, and institutional investors. We can also negotiate the best financing terms for you.
Due Diligence
For SPV in venture capital or project finance, we will thoroughly analyse the market conditions, project feasibility, and regulatory or legal compliance to ensure viability before any funding is secured.
Financial Modelling
We will create detailed financial models to forecast cash flows from the project and assess various financial scenarios to determine whether it can cover debt servicing and operating costs.
Fundraising and Disbursal
Ganar Limited works with a broad network of banks and lending institutions, offering a wide range of financial products and services for Special Purpose Vehicle finance. This may involve traditional SPV loans, bond financing, or even grants. We also ensure a smooth and hassle-free application process and disbursal, so you can have quick access to funds for various types of project financing.
Due to the complexity of the process, getting professional help from Ganar Limited is crucial for successful Special Purpose Vehicle project finance.
To know more about Special Purpose Vehicle finance and how we can help you, get in touch with us at contact@ganarltd.com.
Frequently Asked Questions
Our SPV finance solutions provide a flexible financial structure to organisations and can be tailored to meet the specific needs of the project. This ensures a more efficient and cost-effective financing solution. You can contact our experts to discuss your SPV finance requirements.
No, most lenders do not require the directors of the parent company to provide Personal Guarantees to get SPV finance since a Special Purpose Vehicle has a separate legal entity from the parent company.
We provide high-quality legal representation and perform due diligence to expedite the process of SPV financing. However, it is crucial to provide all relevant information for smooth and speedy disbursal. Typically, it takes less time than traditional loans because the viability is determined based on the project and not the parent company’s creditworthiness.