CREDIT RISK SUITE
Non-Payment Insurance
Protection against the buffer pool depleting below a defined threshold
Non-Payment Insurance protects lenders against the risk of non-payment of contractually due amounts. For example, supporting project finance, prepayment facilities, offtake receivables and other credit exposures associated with carbon and natural capital projects.
By transferring counterparty credit risk to a rated insurance balance sheet, NPI helps reduce loss-given-default, supports capital relief for banks and has the potential to enable lower cost of capital for project sponsors.
Why buy Non-Payment Insurance?
Transfer credit risk
Shifts covered non-payment exposure to a rated insurance balance sheet.
Improve transaction efficiency
Can complement or replace traditional guarantees, supporting faster approvals and closing.
Unlock funding
Helps lenders and investors move past credit concerns and support credible carbon and nature projects.
Strengthen financing terms
May reduce loss-given-default, support bank capital relief and lower the cost of capital.
How the policy impacts the project?
Financial
Reduced lender exposure and potential access to more attractive financing terms.
Operational
Faster credit approval and greater flexibility across financing structures.
Strategic
Scalable protection for individual projects or portfolios across jurisdictions.
COMPETITIVE DIFFERENTIATORS
Most comprehensive policy
Credit risk underwriters / specialists on our team
Ability to use lenders' preferred insurance wording
KEY USE CASES
Lenders and financiers seeking to provide debt financing to environmental / carbon projects
Those seeking equally robust and comprehensive risk management for carbon, as provided across alternative asset classes
