With effect from 6th April 2010 we are offering a
newly negotiated facility that will unlock major projects stalled for lack
of liquidity in the banking sector. Funding resources have sufficient
liquidity to be able to consider projects of virtually any size and
complexity. To avoid an avalanche of enquiries we are limiting initial
enquiries to amounts of US.$500 million (or equivalent) and above. This
restriction is likely to remain in place for the whole of 2010.
In
short:
Loan Terms:
Currency and Amount:
USD, Euros or Sterling; US$500 million and above.
Term:
5, 10 or 15 years. Fixed.
Interest Rate:
Equivalent currency and term bond yield plus a margin to reflect risk.
Fixed at inception.
Security:
First charge and/or corporate debenture over the assets of the special
purpose corporate structure (SPV).
Scheduling:
None. Bespoke financial structures will be put in place to accommodate
cash-flow requirements.
Repayment: At
maturity. Interim repayments are not encouraged and will incur a penalty.
Roll-over: Will be
considered in the light of experience.
Equity Participation:
May be required in some cases.
Geographic Limitations:
None.
Acceptable Projects:
Civil Engineering -
infrastructure and transport. Oil and Gas industry - infrastructure
and extraction. Ship building and mercantile marine infrastructure. Energy
- electricity generation. Commercial and residential development in
undoubted locations.
Unacceptable Projects:
Casino or casino-based developments. Financial restructuring, speculation
or investment. Politically or religiously based or motivated projects. War
zone or war risks areas.
Borrower Conditions:
Liquidity: Must be
able to prove liquidity to at least 10% of the loan amount sought.
Management: First
class, germane track-record for all directors and upper management.
Bankers' Acceptance, Promissory Note, Structured Note,
Letter of Credit, Guarantee or other form of negotiable instrument. To be
rated at least "A-" (S.&.P. or equivalent) for terms up to 2 years and
"Aa-" for terms over two years. Commodities are also acceptable
in some circumstances.
Setting-up Fee: A non-usance fee of not less than
1.5% must be
lodged in advance within an agreed escrow arrangement. This is returnable
upon completion.
Issue
Fee:
3.5%, deductible from the
loan proceeds.
Annual
Interest Rate: Fixed rate set at inception dependant upon the credit
rating of the bank concerned. From 0.25% above LIBOR., or from 6% fixed.
Repayment:
On maturity.
