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Our Solutions Include:

On-Demand Payment Bonds are a viable alternative to Letters of Credit (LC) in the Energy Industry and deployed to secure Pipeline Precedent Agreements, Pipeline Transportation Agreements, Commodity Supply Transactions and ISO Posting obligations.

On-Demand Payment Bonds offer several key advantages:

  • 100% Indemnity provided to recipient (Obligee)
  • Bond facility frees up capacity under LC structure to support growth and/or peak opportunities
  • Callability, payment structure, process and timing closely replicate LC conditions/terms
  • Program facilitates/eliminates internal economic hurdle rates associated with deploying traditional LC capacity
  • Priced competitively to LC cost, with benefits at rates up to and exceeding current LC costs
  • Premium paid by Principal for the benefit of obligee
  • Provides alternative within a suite of securitization methods based on commerc
  • Credit, Structured Credit, and Political Risk Insurance
  • Industry-Specific Program Customization
  • Ongoing Service and Support with Policy, Claims and Credit Limits
  • Supply/Market Area Mark-to Market
  • Risk Metric Enhancement
  • Credit Management Support
  • Credit & Collections Policy Procedure Development, Support and Consulting
  • Commercial Collections
  • Clearing of Physical Credit
  • On-Demand Payment Bonds to replace Letters of Credit
  • Alternative Financing Structures
  • Enhance Funding Rate for Receivables Purchase Programs funding rate