Lux Eco Securities invests only in assets that are already incoming producing. The income is largely originated from long term contracts with reputable global corporations with an indisputable credit-rating. The payments are often secured by financial securities like credit-insurance, state export guaranties, off-take contracts, cash-backed bank guaranties, letters of credit, promissory notes, etc.. These securities have a fixed value, are rapidly turned into cash assets and in case of ememrgency factored or discounted. The credit risk exists of course theoretically, but is fully recoverable.
Lux Eco Securities invests only in assets that constitute proven technologies, certified, accepted and deployed by industry leaders, under fully executed preferred supplier agreements. The focus is on relatively low CAPEX and OPEX assets, with long economic and technical life time and with short pay-back terms. In general these assets can be rapidly and easily re-financed by bank loans, sell and lease back to ensure short investment periods and high gear cash flows in the portfolio. All assets will be properly insured by insurance providers with minimum A-rating.
Inherent to the market acceptance of green emerging technologies, i.e. hydrogen powered vehicles, the market demand and the offtake prove in the early stages to grow exponential. These technologies are therefore largely non-correlated to global macro-economic developments and i.e. commodity market volatility. Profit margins and asset values however tend to increase as economies of scale kick in.
As the currency of the bond principal and the asset in which we invest are the same the bondholders are not exposed to the volatile curency exchange rates and unexpected currency exchange losses. We herewith avoid also the exorbitant cost for hedging and “stop loss” strategies.
