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Overview
Minimum request US$25Millon or €25Million.
Our project finance bond program is a simple and quick way to get your project funded. The investor provides the bonds and the loans. The project is applied to a Bond offering and Medium Term Notes (MTNs) issued as a means to finance the project. After the Bonds are applied to your project, the Bonds can be viewed by institutional Bond buyers, banks, hedge funds and pension funds worldwide by Depository Trust Committee (DTC), Clear Stream and Euro Clear. At this point, the bonds are already issued, registered and ready for project financing. The bonds are fully collateralized, 8-year term, 6.5% fixed interest bearing bonds. The loan will have a CDS, (Credit Default Swap), in place issued from a top World Bank securing the bond buyers principal and interest in the event that the bond issuer or the project default on repayment terms. The investor will raise twice the amount needed to fund the project, half of which will be used to fund the project and the remaining half will secure the loan. Investor will structure the loan based on an interest only loan at 4.5%, with a balloon payment in 6 -8 years depending on corporate pro-forma returns. Minimum request is US$25Million or Euros.

Project Finance Bond Program Procedure
This is a general overview of how the investor’s program works and what will be stated in your Conditional Loan Commitment Letter. Specifics concerning account information and some of the participating organizations may vary based on your specific project, but these are the main components of the program. These are the steps that must be followed:

1. A Commitment Letter must be received by the investor on the client’s Company letterhead, that states the corporate desire to have the investor proceed with its project finance bond program on behalf of the client.

2. A deposit of one percent (1%) of the total loan is required to have the bonds issued and delivered on behalf of your project. The 1% fee can be deposited bank to bank (client’s bank to investor’s bank) or can be delivered to client’s company Legal Counsel who will act on client’s behalf. If client prefers to engage Legal Counsel, then Legal Counsel on behalf of the client, must send a letter to the Investor confirming that they have the 1% deposit held for the benefit of the investor. Investor’s banking institution will contact client’s Legal Counsel to arrange for the wiring of the funds.

3. Investor will provide proof of delivery of bonds by way of a Bloomberg listing in the amount stipulated in the Term Sheet. The Bonds will be allocated to client's project and delivered into investor’s account. 100% of client’s deposit is refunded if the bonds have not been delivered as designated within 10 banking days. The bonds will be sold on behalf of your project within 90 days or sooner and your project is funded. If these bonds have not been sold within the 90 days, you have an option to give back the Bonds and request a full refund.

4. Investor will require a SPE (Special Purpose Entity) to be formed for this project. This Entity will be pledged as collateral guarantee for repayment of the loan. This allows non-recourse position protecting the borrower if for any reason the project defaults.

5. The Terms of the Note will be a simple interest payment of 4.5% per annum and the term of the loan will be 6 to 8 years, based on client’s pro-forma, with no pre-payment penalties.

Submit your proposal for project finance and we will provide you with a sample letter of interest (LOI) to be copied on your company’s letterhead. After our review of the project we will set up a conference between client and investor.

 
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