Introduction
Recent developments in the European economic landscape, such as
inflation, higher interest rates and strict regulations for
commercial banks, have prompted various types of borrowers to
explore alternative methods of raising financing. This is
especially true when it comes to borrowers seeking long-term
funding, such as commercial real estate developers, shipping
companies, large corporates and governmental organisations.
Credit Tenant Lease (CTL) financing is one such
alternative method of financing. This article highlights its key
features, challenges and benefits and is based on insights gained
in our recent involvement in a large number of CTL financings
across Europe and beyond.
