Switzerland is building – many municipalities currently have ongoing infrastructure projects including financing which must be realized. This is also true for the municipality of Däniken, which decided in November 2018 to take on additional liquidity due to the large investments that are pending.
Of the various possibilities for raising money, the financing platform cosmofunding, which addresses several institutional investors with one request, was able to establish itself. We are pleased to report about the success story of the 2,850 inhabitants municipality in the canton of Solothurn within an interview with Martin Suter, Head of Finance Municipality of Däniken.
How did you hear about the cosmofunding financing platform?
In September 2018 we were invited by Vontobel to one of the first information events in Olten. The platform aroused my interest during the live demo and convinced me very much overall. I also have an affinity for digitization and am open to new solutions.
In order to start a free and non-binding request on the platform, borrowers do not have to submit any additional documents such as annual accounts. This is not necessary as cosmofunding works exclusively with the Swiss rating company fedafin AG, which is recognized by FINMA.
The financing request for the refinancing of the municipality of Däniken was placed on the platform one month after the launch of cosmofunding. The community in the heart of the Niederamt was able to find the best offer with a private placement within a few days.
How did you perceive the process from entering the request to transferring the money to your account? How would you rate your effort?
The entire process on the platform from input to acceptance by mouse click is very simple and fast. After receiving the first offers there is a very good overview with all meaningful information for the evaluation of the financing offers (interest, costs, net payment etc.). Only the procedure after the conclusion of the private placement, with the necessity to sign the contracts, has over-rashed me at the first borrowing. We were always very well accompanied in case of questions regarding the contracts or also during the process and were able to reach the helpful cosmofunding team at any time.
In 2018, investments for the renovation of the town hall in Däniken were planned. The total renovation of the 40-year-old community center includes the renewal of the outer shell, parts of the interior, and measures for earthquake protection.
Will you again consider cosmofunding for further financing and would you recommend the platform to others?
We will consider cosmofunding for our next demand, which will be coming soon. I appreciate the very advantageous conditions and interest rates, which the competition can seldom keep up with. After our first preliminary sounding, it looks as if cosmofunding will again offer the best offer. If this is the case, we will gladly close the financing with cosmofunding again.
I have already mentioned cosmofunding in exchange with neighboring communities and can recommend the platform because of our good experiences.
It turns out that cosmofunding can be used ideally for refinancing or also for the financing of projects. Loan seekers do not necessarily have to be part of the public sector, we also support institutional borrowers.
Are you also looking for financing or are you interested in investing as an institutional investor?
We are always there for you – your cosmofunding team