OEI provides institutional-grade collateral instruments — Standby Letters of Credit, Bank Guarantees, and Surety Bonds — against our own leveraged credit facilities with top-tier global banks and insurance carriers. Project owners obtain the capital backing they need without posting direct collateral to a bank.
Depending on your project type, jurisdiction, and lending institution, OEI can deliver collateral through two distinct instrument classes. Both paths lead to the same outcome — a credible, bankable collateral instrument that backs your credit facility.
A Standby Letter of Credit (SBLC) is a bank-issued instrument that guarantees payment to a beneficiary if the applicant fails to fulfill contractual obligations. Bank Guarantees function similarly and are the preferred instrument in EU markets. Both are universally accepted by lenders as primary collateral.
OEI holds leveraged credit facilities with HSBC Hong Kong, Bank of China, DBS Singapore, Credit Suisse Zurich, and Woori Bank. This allows us to issue SBLCs and Bank Guarantees against our own facility — your project does not need to post direct collateral to the issuing bank.
A Surety Bond is a three-party agreement between the project owner (principal), OEI (obligee), and the insurance carrier (surety). The bond guarantees project performance and financial obligations. For lenders who accept surety bonds as collateral, this instrument can replace or supplement traditional banking instruments.
OEI works exclusively with First Pacific International and Ally Insurance International — institutional carriers with the capacity and rating to issue bonds for large-scale project finance. Surety bonds are particularly effective for infrastructure, energy, and real estate development projects.
For a bank to issue a $25,000,000 SBLC, their client must hold at least $25M in liquidity or highly marketable securities at that bank. The bank then charges an issuance fee of typically 2% to 5% of the instrument value. Most project developers do not have $25M sitting with a foreign bank — and even if they did, they would not want to encumber it.
OEI maintains leveraged credit facilities with institutional banks and insurance carriers. This allows OEI to issue collateral instruments against our own facility — without requiring the borrower to post direct collateral. OEI provides the collateral backing for the project.
In return, OEI secures its position by holding a collateral or equity stake in the project, ensuring our instrument is not called upon due to project failure. This alignment of interests protects both OEI and the borrower throughout the transaction.
OEI can deliver the collateral instrument to any bank or financial institution of the borrower's choosing, provided that institution has an existing credit facility. If no credit facility is in place, OEI will arrange credit against the collateral in exchange for a 5% equity position in the project.
This is a firm requirement — no exceptions. Before any collateral instrument is issued, the borrower must demonstrate the capacity to pay the issuance cost and must fund that amount into OEI-controlled escrow. A recent Proof of Funds or Bank Statement showing sufficient liquidity to cover the issuance cost is required at application — before a review call is scheduled. The issuance cost is paid directly to the issuing bank or insurance carrier — OEI does not retain this fee. Collateral is issued only after the escrow is confirmed.
OEI is a capital provider — not a project financier of last resort. Borrowers come to OEI for capital solutions. For compliance and risk purposes, it would be commercially inappropriate for OEI to advance the issuance cost for a project that is not already an OEI-equity project. OEI would have no legal basis to recoup those funds if the borrower's project were fraudulent or failed underwriting.
This facility is designed for professional project owners and developers who have identified a project with clear use of funds, have some level of existing liquidity, and require institutional collateral backing to access a credit facility. Applicants with no capital, no track record, and no collateral source will not be accepted. OEI does not fund 100% of any project, and will never advance issuance costs on behalf of a borrower.
The issuance cost is paid directly to the issuing bank or insurance carrier. OEI does not receive or retain the issuance cost. OEI's compensation is a success fee at closing and, where applicable, an equity position. All issuance costs must be funded into OEI escrow prior to instrument delivery.
| Facility Size | Issuance Rate | Example — $10M Facility | Notes |
|---|---|---|---|
| $5,000,000 – $7,000,000 | 5.00% | — | Smaller instruments carry higher per-unit cost to issuing institution |
| $7,000,001 – $150,000,000 | 3.00% | $300,000 into escrow | Standard institutional range — most transactions fall here |
| $150,000,001 and above | 2.50% | — | Large-scale infrastructure and energy projects |
OEI operates a structured, sequential process. Each step must be completed before the next begins. There are no shortcuts and no exceptions to the order of operations — this protects both the borrower and OEI.
All seven documents below must be submitted before a review call is scheduled. Incomplete applications are not reviewed.
A call is scheduled between OEI and the borrower or borrower's authorized representative. OEI will confirm the project scope, use of funds, draw schedule, and the borrower's ability to fund the issuance cost prior to the call.
If accepted, the borrower receives an OEI Private Credit Term Sheet outlining all facility terms, issuance cost, success fee, and equity position (if applicable). The term sheet carries a 72-hour expiration date. Upon execution, the borrower is required to pay a fully refundable $7,500 contract retainer — held in escrow and applied at closing.
OEI prepares and delivers the Collateral Loan Agreement, along with the Credit Facility Agreement and Equity Agreement (if OEI is arranging the credit facility). All documents must be reviewed, signed, and returned by the borrower before proceeding.
Following execution of all agreements, the borrower funds the issuance cost into OEI-controlled escrow. This is a mandatory step. The issuance cost is not paid to OEI — it is held in escrow and disbursed directly to the issuing institution. No collateral instrument will be ordered or initiated until escrow is confirmed.
OEI does not profit from the issuance cost. OEI earns a 3% success fee at closing and a 5% equity position (where applicable). The escrow structure ensures the borrower's funds are protected — fees are only released when collateral is confirmed.
Approximately 72 hours after escrow confirmation, the issuing bank or insurance carrier delivers the SBLC, Bank Guarantee, or Surety Bond to the designated beneficiary institution. OEI provides confirmation of issuance to all parties.
If OEI arranged the credit facility, disbursement can begin within 48 hours of collateral delivery, following the agreed draw schedule. If the borrower has their own credit facility, the collateral is delivered to their lender and draw timing is governed by that institution's process.
OEI maintains active credit facilities and working relationships with the following institutions. All collateral instruments are issued through these institutional relationships — not through intermediaries or brokers.
OEI always protects registered brokers. If you have a Fee Protection Agreement, OEI will honor it. The 3% success fee at closing includes a 1.00% allocation for any broker involved in the transaction. Brokers should register and submit their FPA prior to deal submission to ensure protection.
Submit your application package and a member of the OEI Private Credit team will schedule a review call within 48 hours. All reviews are conducted directly with senior OEI partners — not junior associates.