Following the effective failure of several major banks and insurance
companies and the understandable inability of the survivors to commit to
anything with an element of risk, the market for environment and landscape
reinstatement bonds has become very limited and extremely expensive.
The reluctance of the surviving banks and insurance companies to issue
reinstatement bonds at economically viable rates, or at all, has created
a void which Benington Securities is able to fill by offering an
alternative that provides the cover required within an envelope that is
cost effective to the customer and acceptable to the beneficiary.
Depending upon the risk the rate ranges from 5% to 7½%
per annum. For medium and long term facilities the rates are discounted
back to present day value at a very attractive rate. Because the funds
allocated to support this facility are finite, it is necessary to limit
individual bond values to no more than €50 million. Applications for
values of less than €20 million will probably be declined. The bonds can
also be written in United States Dollars.
The bonds are issued by a major, nationalized insurance company and then,
for added credibility in the present economic climate, avaled by a major
bank. Both entities are rated “Aa” and “A1/P1” to give the maximum
possible weight to the bond when presented to the relevant authority or
government for acceptance. It is understood that neither entity is
involved with "toxic debt" investments.
There is no requirement for a debenture or legal charge over the assets of
the insured. The bond issuer is content to take a formal undertaking that
at least 20% of the bond value is held by the insured in liquid assets.
Within generous limitations, these assets remain under the sole management
discretion of the insured.
Designed for short to medium term projects, the bonds are available for
terms ranging from 1 to 10 years. Renewal options can be written in if
required.
Please email us for further information providing a brief outline of the
project requiring cover and the amount of cover required.
