Ana Biloglav

NAV facilities in 2026: structuring, governance and market practice considerations for sponsors

In this In Practice article the authors examine how English law-governed Net asset value (NAV) facilities are structured and negotiated in 2026. The article focuses on practical drafting themes relevant to sponsors, including structural separation, borrowing base and loan-to-value (LTV) mechanics, recourse-light structures, automatic NAV adjustment provisions and valuation governance. The aim is to identify the key areas where structuring decisions and negotiation strategy can materially affect flexibility, liquidity and risk allocation.