Loan Facilities

TCV offers the following wide range of loan facilities, which may be tailored to meet clients’ specific funding needs:

Short-Term Loans

Short-term loans are for clients seeking to borrow for periods as short as one day and up to one year, including an 11am facility that is highly liquid, with funds available on a same-day basis. Short-term loans are generally used to fund working capital and cash management requirements.

Term Floating Rate Note Loans

Term floating rate note loans are for fixed terms, however the rate of interest paid is variable and may be reviewed monthly, quarterly or semi annually. Term floating rate note loans are an attractive hybrid, combining stability of finance as to amount and term, with exposure to short-term interest rates.

Fixed Rate Loans

Fixed rate loans are for clients seeking to borrow for periods longer than one year. They include fixed interest loans, fixed rate facility and consolidating fixed rate facility loans, amortising principal and interest loans, and structured loans. TCV offers fixed rate loans for periods of up to 12 years, while loan terms greater than this can be provided by special arrangement.

Fixed rate loans are generally used to fund assets with a corresponding life or fixed assets that have a long life. They provide the borrower with a level of certainty, as the interest costs are fixed and known for the life of the borrowing.

Flexible Rate Set Term Loans

Flexible Rate Set Term loans are for a fixed term and coupon payment frequency. Flexible Rate Set Term loans provide clients with the flexibility to set the interest rate at the floating rate benchmark rate, or fix the interest rate for certain periods during the life of the loan. The Flexible Rate Set Term loan provides for multiple resets of the interest rate from floating to fixed, or from fixed to floating. Interest rate resets occur on coupon payment dates.

Forward Settlement Loans

Forward settlement loans are loans that will be settled on a specific date in the future. We can arrange to settle all types of client loans on a forward date. The terms of the loan are agreed on the transaction date and the funds are delivered on the settlement date. Interest accrues from the settlement date.

TCV manages the underlying derivative arrangements in order to provide forward settlement loans to clients. Forward settlement loans are therefore in part a financial arrangement, and clients wishing to arrange a loan with a forward settlement date will require a Treasurer's approval to enter into such a financial arrangement, in addition to a Treasurer's borrowing approval.