Securities-Backed Financing

The stock loan, explained.

A stock loan — securities-backed financing, or Lombard lending against listed equity — lets a shareholder mobilise a concentrated position without selling it.

01 · The Instrument

The Pledge

You pledge; you keep ownership.

You pledge your listed shares to a qualified custodian under bankruptcy-remote arrangements and receive a cash loan equal to a fraction of the line’s market value. You remain the beneficial owner, keep the dividends (subject to structuring), and recover the full position on repayment.

02 · Loan-to-Value

LTV

The ratio answers to the holding.

Loan-to-value is calibrated to the stock’s free float, daily traded volume, volatility, and your own regulatory standing. A liquid large-cap supports a higher LTV than a thin mid-cap. There is no rate card: we quote an indicative range only after reviewing the position.

03 · Tenor & Recourse

Structure

Non-recourse, limited- or full-recourse.

Tenor typically runs 12 to 36 months. The recourse profile is your choice: a non-recourse structure protects you against a fall in the underlying below a defined threshold, while a full-recourse structure preserves maximum LTV. Drawn in the listing currency or in cross-currency structures (USD, EUR and beyond).

04 · Process

Step by step

How a stock loan is arranged.

—	Stage	What happens	Timing
01	Confidential enquiry	High-level details of the position and the financing requirement, shared through a secure channel under NDA.	Day one
02	Indicative terms	A preliminary structure with sizing and headline economics, typically issued within one to two business days.	1–2 days
03	Documentation	Terms formalised under institutional documentation, with counsel of your choosing; KYC and a share review settled in parallel.	Concurrent
04	Custody & pledge	Pledged shares move to a qualified custodian under bankruptcy-remote arrangements; beneficial ownership preserved.	On signing
05	Funding & stewardship	Capital deployed against the agreed timeline, with a single named principal accountable for the life of the facility.	On funding

05 · FAQ

Stock Loans

Frequently asked.

01How much can I borrow?

A fraction of the line’s market value, set by its liquidity, volatility and your standing. We quote an indicative range after review.

02Do I lose my voting rights?

Not as a rule. You remain the beneficial owner; the structure preserves control, subject to the documentation.

03Does the loan have to be disclosed?

A pledge by a substantial shareholder can be a disclosable event depending on the venue. We map those obligations at the structuring stage.

04What happens if my shares fall in value?

It depends on the structure you choose. A non-recourse facility carries a buffer and protects you if the underlying falls below an agreed level; a recourse facility may call for a top-up. We set the structure to the outcome you want.

05How long does a stock loan last?

Tenor typically runs one to three years, with options to roll, refinance or repay early and release the pledge.

06Which shares qualify as collateral?

Listed shares with genuine free float and traded volume on a recognised exchange. Liquidity and concentration drive eligibility more than headline value; we review the specific line.

A line to finance?

Tell us the stock, the venue and the size of the position, and we will come back with indicative terms.

Request indicative terms