Please contact Susanna Bondéus or Magnus Lind if you want to be considered for a listing here as a new financial service initiative. We are very eager to present new initiatives that can mitigate the problematic situation created by new financial regulation.
(All text below is composed by the companies themselves).
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The objective of the Corporate Funding Association (CFA) project is to incorporate a new bank whose sole business purpose consists in granting medium and long-term loans and revolving credit facilities, exclusively euro-denominated to corporates. This bank would be supervised by the French banking authority.
Initially targeted members are non-financial corporates, from any country, with a good credit quality (confirmed by a public or private credit rating). Risk diversification rules require at least 100 corporate members to start operations. Technical possibilities are available to give SMEs (and the general “ecosystem” of the large corporates) an access to the project without weakening the overall strength of the structure or the position of the corporate members.
A major strength is that its clients are also its shareholders and they can afford to provide CFA with virtuous ground-breaking mechanisms which are not available to traditional banks:
- outstanding built-in self-adjustments of regulatory capital according to the changes in the credit portfolio (acknowledged by a rating agency)
- credit facility pricing adjusted quarterly according to the prevailing market conditions
- conservative asset-liability management, without any interest rate or currency risk, and strictly restricting maturity mismatch
- large access to the liquidity of the ECB
- extreme transparency of the credit commitments thanks to the public disclosure of the shareholding (“look through”)
As of November 2011 the finance departments of 22 large international corporates and a leading rating agency have recognized that this new funding tool is “potentially efficient, competitive and robust”. Governance: beside mechanisms avoiding conflicts of interests, CFA differs from previous experiences of consortium banks from the following prospective:
- industry and geographical diversification of the corporate members
- large number of corporate members required to start operations (at least 100)
- reputation of the corporate members
This project is appealing for corporates for several reasons:
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| Philippe Roca from the Corporate Funding Association (CFA) |
- diversify their funding sources in the prospect of the implementation of, among others, the Basel III regulation
- provide them with credit facilities “at cost” (thanks to low operating costs and to dividends), which is the most transparent pricing possible
- in case of market disruption, give them a dedicated access to the ECB refinancing operations
- participate to the reduction of pressure on banks’ regulatory capital and liquidity
- as CFA does nothing else than credit, facilitate the allocation of side-business to the corporate members’ lending banks
- for a contribution of 10 to the capital of the bank, along with the rights attached, a corporate member rated BBB+ can initially expect a credit facility of 140 and 240 after 4-5 years
Kantox truly thinks that derivatives are not a solution but THE problem. Kantox believes that the financial industry requires a radical rethink and that innovative financial services creating NO systemic risk are more important than ever. Based on these conclusions, we developed a simple, transparent and fairly-priced FX hedging solution, available both for SMEs and large companies: Kantox.
Kantox is the alternative to traditional FX hedging products offered by banks (forwards, options, etc.). We has created a netting marketplace where companies can look for and find others companies - their counterparties - with opposite currency flows to match and net their flows. This way, Kantox offers a transparent and fairly-priced FX hedging solution without banking intermediation which does not require any kind of margin deposit nor margin call to close your hedge.
Our client portfolio includes both SMEs and multinational companies with billion dollar revenues. Our investors include successful entrepreneurs from the Web industry and professionals from the finance industry, including partners from Deloitte and HSBC.
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| Philippe Gelis, CEO at Kantox |
- Winner of Financial Congress Corporate Award 2011.
- Winner of OMExpo Investor Day 2011.
- One of the 3 winners in Seedrocket 5th Campus.
- Finalist in LinktoStart Award 2011.
- Best team award in the Startup Week End 2010.
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