Once the inaugural General Meeting has incorporated the Corporate Funding Association, the set-up is expected to last between 12 and 18 months. CFA will need to recruit its employees, implement IT systems, proceed credit committees confirming the admission of the first corporate Members and apply officially for its banking licence. The start of lending operations will be preceded by the delivery of credit ratings by at least two agencies and by a road show introducing CFA to the debt capital market large investors.
Equity will be called from the corporate Members progressively as CFA will issue debt and grant increasing amounts of credit facilities to its corporate Members. This ramp-up is expected to last a couple of years. A last ramp-up phase will take place once the bank’s internal rating model is authorised by the banking authority, allowing progressively a higher level of funding leverage for corporate Members.