Fintech and insurance platform OneNexus has formed a strategic partnership with North American guarantee provider The Travelers Companies, Inc. to establish a new guarantee program designed specifically for the energy industry.
Through the partnership, Travelers, a U.S. Treasury-listed surety company, will offer covered bonds backed by a long-term financing platform developed by OneNexus.
The program represents one of the first large-scale integrations of traditional guarantee capabilities with modern financial guarantee structures to help guarantee the fulfillment of long-term decommissioning obligations.
By combining Travelers’ guarantee expertise with OneNexus’ long-term financing platform, the energy and wider infrastructure sectors gain a unified structure that provides significant long-term capabilities for their decommissioning and financial guarantee needs.
The new plan establishes a comprehensive platform to provide stable and long-lasting financial guarantees for recovery liabilities.
This is achieved through Travelers providing guarantee capabilities and OneNexus’ long-term financing engine, which is designed to support decommissioning obligations. The platform benefits operators, sellers, regulators and counterparties.
Chris Tata, head of commercial surety at Travelers, said: “We believe our partnership with OneNexus represents innovation at its best. Combining insurance principles with traditional surety structures helps reduce risk, improve affordability and enable companies to properly fund their decommissioning obligations.”
The program is further supported by Munich Re, which will provide regulatory capital and strategic support.
This support enhances the platform’s resiliency, allowing OneNexus to provide large-scale financing for long-term liabilities in the oil and gas, industrial, and broader infrastructure sectors.
Adam Flikerski, Chairman of OneNexus, said: “OneNexus has built the financial technology needed to responsibly fund decommissioning obligations associated with next-generation energy and infrastructure assets.
“Our mission is to ensure long-term decommissioning obligations are funded in a secure, permanent and safe manner, and our partnership with Travelers marks an important step towards this shared vision. We would like to thank the Travelers team for their time and support in facilitating this first-of-its-kind structure. We look forward to a mutually beneficial partnership in the coming years.”