Providing a Lombard loan solution to a complex transaction
Our client’s wishes
Mr X is a resident, non-domiciled individual and a valued client of Nedbank Private Wealth for over 10 years. Just before the Christmas period, he approached us with an urgent request for a Lombard loan. The loan was to be secured against his investment portfolio held with Nedbank Private Wealth and was required as part of a larger corporate transaction valued at approximately £100 million. Specifically, Mr X needed a loan of £7.7 million, secured against a portfolio worth £16 million.
Our clients' situation
Given the long-standing relationship between Mr X and his senior private banker within our London office, we were able to arrange a meeting on the 23 December to understand the specifics of the request, the critical deadlines, and to conduct the necessary affordability analysis.
Time was of the essence as there were also multiple other interested parties in the commercial purchase. The funds needed to be in the client’s solicitor’s escrow account by no later than the 10 January 2025. With the holiday period fast approaching, this presented a significant challenge to secure the required approvals within such a short window. However, our team was determined to meet the deadline and rise to the challenge.
Collaborating closely, our credit specialist team worked closely with our client’s private banker to submit the credit proposal to our credit committee by the 31 December. They were then able to secure the necessary sanction by the 7 January, providing the client with a three-day grace period to transfer the funds to his company accounts and ultimately to his solicitor.
We successfully structured a 3-year Lombard loan at a variable rate margin of 0.85% over the Bank of England base rate.
Our clients' outcome
We successfully structured a 3-year Lombard loan at a variable rate margin of 0.85% over the Bank of England base rate. While the term was set for three years, we included flexibility for Mr X, allowing him to repay the loan early or make ad-hoc reductions without incurring any penalties, should his investment portfolio perform as expected.
As a result of the swift action and tailored solution we provided, Mr X is now in the advanced stages of the commercial purchase and hopes to conclude the deal by the end of March 2025.
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Contact
Get in touch with a member of our team to find out how Nedbank Private Wealth can help you achieve your financial goals and objectives.
Email our credit specialists directly at [email protected] or call +44 (0)1624 645000 to speak to our client services team.
Any examples of investments and structures used are for illustrative purposes only. This case study does not constitute an invitation or inducement to buy any financial investment or service. None of the content constitutes advice or a personal recommendation. Individuals should seek professional advice, based on their jurisdiction and personal circumstances, before making any financial decision.
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