Bank Term sheets in Real Estate structured finance - Business Immo - Formations
Le portail de la formation continue dédiée à l’industrie immobilière
Bank Term sheets in Real Estate structured finance

How banks secure their position? How their clients negotiate?


- Put in practice in English the terminology used by banks in their term sheets - Understand how banks fix their pricing and secure their lending position in their term sheets - Find out to what extent some of the term sheet issues (pricing, securing elements, LTV, reserve accounts etc) can be negotiated between the banks and their clients - Analyse how banks manage their Real Estate lending portfolio. The concepts of Underwriting, Syndication and Refinancing through securitisation. And understand the impact of such processes on the borrowers (/investors). - Understand the drivers of the Real Estate financing industry and specifically the impact of the Basel 2/ 3 regulations on term sheets


1. Reviewing fundamentals of Real Estate Financing - The key notion of « Non-Recourse » finance on a Special Purpose Vehicle (SPV) - The banks’ regulatory framework. How Basel 2/ Basel 3 and Risk Weighted Assets (RWA), impact term sheets and the Real Estate industry as a whole .Podcast presenting Basel 2/ 3 regulations. - Senior, Junior and Mezzanine debts. What is meant behind the words “subordinated debt” and “waterfall” - The term sheet step by step : Pitch, indicative Tem sheet, Final loan agreement & Security Addendum. 2. Debt fixing, Repayment schemes, Pricing, LTV, Suspensive Conditions versus Conditions precedent (CP’s) - Debt amount: tuning on an LTV basis. Reminder on how Real estate asset valuations impact the financing. - Overview of various amortization structures : linear, In Fine/ bullet. Observing market practices in Europe - The Pricing components: Interest spreads and various fees. What are the bankers’ pricing criteria. What is negotiable by the Real Estate investors (/borrowers) and on what basis? - Conditions suspensive to Signing. - Conditions precedent to drawdown (CP’s) and key underlying principles for the banks > Workshop: The participants negotiate and put together the first part of a term sheet. As basis for their work they use the valuation report of a to – be – financed office building. 3; How lenders secure their position and what is prone to negotiation between banks and their clients - Covenants. Financial and non financial. - Over pledges/ assignments. How does it apply? On what? (rental proceeds, SPV shares etc). The French « Loi Dailly ». - Securing the loan: Mortgage securities . Mortgage ranking, PPD in France - Pari passu clauses, mutualisation of cash flows, negative pledge, cross - collateralisation - Over reserve accounts (DSRA) and escrow accounts - How the Interest Rate and Foreign Exchange (FX) risks are covered. > Workshop: Negotiating and putting together the second part of a non recourse term sheet, financing an office building.

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PUBLIC Banquiers, analystes, investisseurs, asset managers, directions financières, propriétaires utilisateurs, chefs d’entreprise, promoteurs, courtiers, juristes PRÉREQUIS Avoir des notions d’analyse financière. Niveau d’anglais courant écrit et oral

MÉTHODOLOGIE Alternance entre aspects théoriques, exemples et études de cas