Demand Payment Bonds
Pricing instability along with limited capital have made it increasingly difficult for Energy and Power companies to access the cost-effective liquidity they require to propel growth. In this environment, companies need to manage their credit requirements while controlling costs and mitigating their financial risks. These industries are ready for change.
Collateral posting requirements are costly, tie up valuable liquidity and are a poor allocation of limited capital. Demand Bonds (DB) can replace cash or Letters of Credit (LC’s) freeing up working capital for more efficient uses and improving the overall leverage of your company. As an added benefit, they are typically less expensive than LCs.
Iridium is bringing an innovative and cost-effective solution to the Energy industry. At Iridium we have been instrumental in the development and application of demand bonds
that can satisfy business requirements and relieve the financial pressures that come with posting obligations. Now you can redeploy your capital to maximize financial returns to better suit your needs.