What is Leasing?
Leasing is a prevalent and important financing strategy used across many business settings that involves an agreement between a lessee and lessor to use an asset for a set fee, paid in installments throughout the term of the lease. The lessee doesn't have to purchase the asset outright, and by the end of the lease, has paid the lessor a portion or all of its market value.
H2O Securities provides finance leases, operating leases, and conversions leases (also known as sale and leaseback agreements).
Finance Lease
H2O Securities transfers ownership of the asset to you at the end of the term. We do not place a residual investment in the asset, so the lease is similar to a bank loan and is treated as a depreciating asset. This is best suited for assets with a long lifecycle, or when ownership at the end of the lease term is desirable.
Operating Lease
We work with you to determine the best end-of-term solution for your business, which could include disposing of, extending, purchasing, or upgrading the assets. Should you decide not to keep the equipment, H2O Securities will then dispose of the water equipment in an environmentally friendly manner, lease it again, or sell it on.
Conversion Lease
A conversion is where you, the owner of the asset sell it to H2O Securities for a predetermined amount and then lease it back from the us, for a predetermined period. You as the seller of the asset become the lessee under this arrangement.
Why Lease? Benefits of Leasing with H2O Securities
H2O Securities offers next-generation leasing solutions that blends traditional finance methodologies with sophisticated blockchain and risk management for large corporations and government clients. We empower our clients to cost-effectively finance water infrastructure and provide them with a powerful alternative to the traditional bank lending model. These are just some of the benefits:
Own Your Cashflow
By leasing water infrastructure, you can take charge of your cash flow. Rather than paying the full amount upfront, you can spread payments over the lease term, and even match them to the expected benefits generated by the asset.
Keep Abreast with Technological Advancements
Replacing older components or equipment with the latest technology can enhance productivity and profitability. By leasing water infrastruture instead of purchasing it outright, you can receive new replacements and upgrades every few years and maintain your competitive edge. Newer equipment is generally more cost-effective, efficient, and aligned with safety standards. This reduces the risk to your staff's safety and your business's reputation, while also providing a boost to your bottom line.
Manage Your Capital and Debt
Participation in the H2O Water Network generates business opportunities for network participants both on-chain and off-chain leveraging the efforts, initiative, entrepreneurial ingenuity of the network participant. Network participants can participate and earn rewards based on their participation. Rewards are algorithmically generated and based on participation in the H2O Water Network opportunities and services, including staking of H2ON Tokens.
Avoid End-of-Term Ownership Responsibilities
By leasing with H2O Securities you can prevent your business from being burdened with costly end-of-term ownership obligations, especially concerning the disposal of outdated assets in compliance with government regulations. In such cases, H2O Securities can offer you services such as onsite decommissioning, and remarketing expenses.
Reduce Finance Costs
Leases with H2O Securities are more cost-effective than corporate financing because we invest our own cash in the water infrastructure purchase. We leverage market partnerships to realize maximum value from the infrastructure when returned, which allows us to offer discounted lease payments to you as the lessee. This results in extremely low-interest rates sometimes even as low as 0%, making leasing cheaper than buying outright or using other financing methods. By partnering with a specialized Finance lessor, like H2O Securities, businesses can access expertise directly and bypass additional broker costs.
How does Leasing Work?
- Plan, Contract, and Procure: H2O Securities collaborates with you, the lessee to determine your water infrastructure equipment needs and then creates a lease agreement for you that aligns with the useful life of the equipment and assets required. A flexible leasing solution can be created to simplify large-scale asset refresh projects.
- Deploy and Pay: H2O Securities manages the procure-to-pay process, ensuring efficient deployment and supplier relationships. H2O Securities ensures on-time payment and works with suppliers to coordinate delivery. For large projects, supplier payments can align with completion milestones or a credit facility can be established to cover the entire project scope.
- Account and Report: Transparency is crucial in leasing to comply with accounting obligations and ensure cost-effectiveness. Our system displays leased asset details, such as location, cost, and expiry date, and provides real-time asset management and reporting to meet IFRS 16 lease accounting standards using blockchain and our own proprietary technology.
- End-of-Lease Options: At the end of the lease term, you can choose from the options outlined in the lease agreement. H2O Securities will work closely with you to determine the best end-of-term solution for your business, which could include disposing of, extending, purchasing, or upgrading the assets. It's important to note that these options are only available in an operating lease, and not in a finance lease structure. In the case of operating leases, if you decide not to keep the equipment, H2O Securities then dispose of the water equipment in an environmentally friendly manner, lease it again,or sell it on.
Traditional Water Plant Finance - 300 Days
H2O Securities Water Plant Leasing Finance - 56 Days
We can Finance
5 Times More Water Plants
In the +/- 300 days it takes traditional finance structures and procedures to finance 1 Water Plant, the H2O Water Network can finance 5 Water Plants.
As Featured On
Our Team
Julius SteynPrincipal Partner
The Founder / Principal Partner
28 Years experience in Private Equity and Investment Banking. Was instrumental in the formation of 3 banks, as well as the first mobile banking app in South Africa that also issued its own VISA & Master Card. Was instrumental in leading an Engineering team for projects in Saudi Arabia during which plant operations were re-engineered to achieve cost savings in excess of US$ 140 Million during the first year operation and a 2nd project assisting the Saudi Arabia government to consider a restructure of their Privatization approach that would refinance state assets of up to US$ 40 Billion.
Milton SmithExecutive Partner
Executive Partner Marketing
Offers 20 Years Experience in CEO, COO, CCO, Senior Management and Entrepreneurial Roles. Specializes in leading businesses through rapid growth phases. Lead an MTN Affiliated Company to a 1 200% Increase in Turnover and helped grow an international investment company portfolio by 500%. As an early adopter in the mobile software and augmented reality space he founded a mobile software company that serviced global brands including Samsung, Sony, Blackberry, Barclays and MTN. Milton's most recent positions held were Chief Commercial Officer and Chief Operating Officer at Tencent Africa. His technology, marketing and commercial experience will ensure that H2O Securities achieve it's marketing objectives, whilst achieving rapid growth in the water and crypto industries.
Julia SteynExecutive Partner
Executive Partner Internal Audit / Financial Control
A CIMA accountant with over 25 years of experience primarily working in corporate banking & financial services in both the UK and South Africa. As a private consultant for several turnaround businesses, a wider range of business skill sets was gained as the position required strategic thinking on how to improve operational activities and implement the human and financial restructuring requirements to save a company from insolvency. CFO position recently held for a company in the Water Industry brings relevant expertise and understanding to H2O Securities providing specialized knowledge to ensure its business goals are supported by strong compliance and financial controls.
Core Team
Emile Ras
Snr Partner Project Supply Chain Development
20-year engineering experience. Lead Project Manager for the $4.6 billion Green Ammonia Project at the Coega Economic Development Zone this venture includes a 1.5 GW Solar PV Farm, 400MW Wind Farm and a 790,000 ton per annum Ammonia Production Plant.
He completed projects in Bahrain such as the $1.5 billion Bahrain Financial Harbour that included two 53-storey office and residential buildings, a 9-storey Financial Centre and the 10-storey Harbour House commercial building. Emile was project leader for all our Saudi Arabia projects and has substantial knowledge of the water industry.
Steve Johanns
Snr Partner Business Development US Markets
Steve is currently the lead advisor to U.S. Congressman Pete Session’s Crypto Working Group as well as chief advisor & global leader in Artificial Intelligence for Critical Infrastructure, Thalamus Irwine Group and a leading innovator in EV, Triton EV.
He has advised and presented to financial institutions, Universities, as well as government and utility officials in developing markets; he has been an invited speaker to events sponsored by the Bill & Melinda Gates Foundation, MasterCard Foundation, IEEE, as well as the WEF in Davos.
Dr. Scott Young
Snr Partner Investment Banking
Scott is an experienced investment banker with extensive cross-border transaction experience in Europe, North America, the Middle East and Asia. He has held executive positions in firms such as Morgan Stanley & Co, LF Rothschild and Dial Partners LLP.
He is presently board member of OmniCyte, a stem cell company conducting pioneering research and Cambridge Quantum Computing Ltd, who recently completed a US$ 300 Million merger with Honeywell Systems to form Honeywell Quantum Solutions. He is also a Senior Partner at the Monaco Foundry, a Venture Capital and Growth Equity firm.
Paul Wolfe
Snr. Partner Capital Markets
Paul is experienced in both public and private markets and in all phases of company growth including seed capital, growth capital, secondary markets, M&A, trade sales, warrants, and public exits.
He started his career at Bain & Company before moving onto positions such as Board Representative and Integration Manager for GE Capital and Principal at RCM a global multi-strategy alternative investment platform with over $4B in Assets Under Management (AUM).
He is currently COO and Director of Aries I Acquisition Company, a NASDAQ-listed Special Purpose Acquisition Company.
Sumit Bhandari
Snr. Partner Business Development IORA
Sumit has worked directly with the founders of Hewlett Packard (India) & HCL Group. He has been actively involved in operations and business development for companies such as Topline Global Networks, Technet, IIT Delhi Alumni Association.
He was the India Market Adviser for Doddle founded by Llyod Dorfman founder of Travelex. Other companies that used his expertise include Mobile Accelerator (India) & Bay Area Council (California).
He has been actively involved in establishing and developing funds such as; India Japan Partnership Fund, Mars Growth Capital Global Technology Fund & the Bharat Innovation Fund.
Attie Barnard
Snr. Partner Business Information Technology
Attie is the founder and CEO of the JNZ GROUP. JNZ has unique IP that it has deployed as SAAS, PAAS, IAAS as well as two payment gateway platforms. The company has more than 16 years experience in software development and covers a plethora of industries.
Under his leadership the company has established a client base of more than 500 companies across Africa and internationally including the top 3 insurance companies in South Africa.
The systems covers aspects such as Collection, Remittance, Settlement, Audit & Accounting, Notifications, Lending, Order Management, Warehousing, Digital Data Warehousing, Telephony, POS, Loyalty Systems and several other FinTech aspects.
Ebbe Rabie
Snr. Partner Risk Management
Ebbe is the Managing Director: Head of Specialty Risk at Price Forbes (South Africa). He specialises in complex Insurance advice on Corporate Assets, Bankers Blanket Bonds, Structured Trade Credit, Contractors and Plant All Risks and Agriculture.
He advises many blue chip corporates and banks across Africa and has placed many large-scale renewable energy projects in Africa.
He has previously worked for AON, Marsh and JLT where he built successful portfolios and managed risk exposures over multiple classes of insurance and jurisdictions. He is an Economics Science graduate of Stellenbosch University and has a diploma from Harvard Business School in Global Advanced Leadership.
Johan Van Der Westhuyzen
Project Ambassador
Johan is the EMEA Director for DuPont Sustainable Solutions. He has more than 24 years of professional management- and business consulting experience that include roles in the financial industry and a Fortune 100 company, he is currently a director of a winning Operations Improvement management consulting firm.
Previously held the position for Regional Director of DuPont Group a fortune 150 company and before this appointment he headed an investment banking division of Investec Bank in UK and South Africa.
Nicholas Collinson
Regional Partner Investor Relations Channel Islands
Nicholas has over 30 years’ of experience in business and finance. He launched his own business in 1991, which focused on motor vehicle and asset finance and leasing. His company Neva was quick to engage the power of the early internet and developed its own vehicle purchasing platform in 1996. This platform formed the basis of the core system that ran a live fleet of over 100000 vehicles until the business was sold in 2017.
Since then, Nicholas, through his Guernsey-based company has worked as a business consultant assisting with M&A deals (most recently the purchase of a 10% stake in a Swiss OTC company by a US Investment Company and a UK-based investment company purchasing a share in a Peruvian neo bank).
In addition to this, his interest in technology led to his focus on the blockchain sector in 2017/2018 which resulted in him co-founding MELD, a defi lending and borrowing platform in 2020. He played a pivotal role in raising $45 million for the project as well as developing key strategic partnerships. This created a demand from other blockchain projects for his skills and expertise and so he stepped away from MELD in order to focus actively on this space.
He is currently actively involved in multiple blockchain projects, bringing his ‘seasoned’ approach, notably towards Web3 Digital Identity (iamx.id), Agricultural supply chain (authentium.io), CeFi fiat-crypto on/off ramp (damex.io), and an innovative SME blockchain driven SME credit reporting platform (factiiv.io) amongst others. He is a member of the IOD and Chamber of Commerce and manages traditional business strategy and advice roles either as a non-exec or advisor.
Al Kilgour
Snr Partner Investor Relations Middle East Africa
Al is Vice President of Middle East & Africa for a leading US marketing technology business and brings over 25 years of commercial and sustainable growth leadership experience with US technology businesses in the martech, fintech, cybersecurity and machine learning arenas. He has contributed as part of the executive team to two successful IPO’s and one trade sale exit.
Originally from Scotland, Al is based in Dubai having worked extensively across EMEA and APJ.
Tarryn Louw Lottring
Token Community Management
Ms Louw Lottring has been a solid cornerstone of H2O Securities since the very beginning. She started with H2O Securities as Associate Partner, then progressed to Junior Partner. Ms Louw Lottring has been promoted to a full Partner level during October 2022 to take full responsibility for the H2O Securities Token Community Management.
Our Partners
FAQs
Below we've provided some frequently asked questions regarding H2O Securities and the H2O Water Network. If you have any other questions, please get in touch via email.
What is Leasing?
Leasing is a prevalent and important financing strategy used across many business settings that involves an agreement between a lessee and lessor to use an asset for a set fee, paid in installments throughout the term of the lease. The lessee doesn't have to purchase the asset outright, and by the end of the lease, has paid the lessor a portion or all of its market value.
The lessee doesn't have to purchase the asset outright, and by the end of the lease, has paid the lessor a portion or all of its market value.
Are there different types of leases?
Yes, there typically 3 types of leases: finance leases, operating leases, and conversions leases (also known as sale and leaseback agreements).
What leasing solutions does H2O Securities provide?
H2O Securities provides the following lease options for your water equipment needs:
Finance Lease
H2O Securities transfers ownership of the asset to you at the end of the term. We do not place a residual investment in the asset, so the lease is similar to a bank loan and is treated as a depreciating asset. This is best suited for assets with a long lifecycle, or when ownership at the end of the lease term is desirable.
Operating Lease
We work with you to determine the best end-of-term solution for your business, which could include disposing of, extending, purchasing, or upgrading the assets. Should you decide not to keep the equipment, H2O Securities will then dispose of the water equipment in an environmentally friendly manner, lease it again, or sell it on.
Conversion Lease
A conversion is where you, the owner of the asset sell it to H2O Securities for a predetermined amount and then lease it back from the us, for a predetermined period. You as the seller of the asset become the lessee under this arrangement.
Note: Finance lease payments are typically higher than an operating lease because we do not invest in the asset's market value at the end of the lease term. A finance lease is useful in situations where a business is looking to lease a specialised asset.
What is the advantage of leasing water equipment?
Leasing provides businesses with access to the assets they need without requiring a large upfront payment, allowing them to conserve cash and use it for other purposes. Additionally, leasing does not typically impact existing credit lines, providing an alternative source of capital for businesses.
Who owns the water equipment in a lease?
The lessor retains legal ownership of the asset or property, while granting the lessee a specific period of right to use it.
H2O Securities Leasing vs Bank Finance Comparison
Leasing with H2O Securities can lower the total cost of ownership for water equipment and infrastructure compared to traditional bank funding. In fact, leasing saves between 10-15%.
Our Mission
Blend Traditional and Decentralised Finance to increase the global production of water, at a reduced cost and with a greater efficiency, climate resilience, environmental sustainability and social responsibility.
Our Vision
To become the first and obvious choice global partner for low-cost, DeFi based, water infrastructure.
Our Values
Responsible. Respectful. Dependable. Adaptable. Ethical. Sustainable. Professional. Integrity. Dignity.
Purchasing H2ON Tokens
H2ON is a BEP20 Token on the Binance Smart Chain
Please ensure that you have your BEP20 compatable wallet set up and that it's ready to receive H2ON tokens.
To learn how to set up your H2ON token wallet in Metamask you can follow the guide by clicking on the link.
