Hadrian’s Wall Capital : a new alternative to monolines ?

The HWC product has been developed to offer an integrated debt package to a borrower through a single debt instrument provided at a spread over the appropriate Government Treasury/Gilt. HWC will then tranche the debt into two sources, a senior piece (the “A Notes”) and a subordinated piece (the “B Notes”). The A Notes will be issued as senior bonds to the capital markets and the B Notes will be placed with a fund managed by Aviva. The fund, through the B notes, will provide a “first loss” tranche of debt for a project. If we take the example of a PPP transaction ...