This funding vehicle is one of the products of our funding Partner. Please note that in the lending program, the client must provide the bank or the private funder while our Group provide the security/collateral for the loan needed for the project.
IF THE CLIENT NEED A LENDER AND CAN PROVIDE A GUARANTEE
This Group can also provide a Lender if the client have a Guarantee source. They do not provide the client funding and guarantee on the same project except in rare cases that they handle both.
This group provides both the lending and the collateral using trading platform:
About Bond Funding: Bond Funding is a fast, low cost, non-recourse way to finance many types of real estate and non-real estate projects. It can take the form of either a 144A or Reg D structure. To further enhance an offering the client has the options of debt, convertible debt, preferred convertible stock, preferred
stock or stock to raise the desired capital.
Benefits of a Bond Offering:
. Up to 100% LTV
. No Personal Guarantee
. No Credit Checks
. No Asset Verification
. Best Effort Basis
. Closing timeline – often as little as 90 to 120 days
. Low Underwriting fee
. Flexible repayment terms
. Territory: Worldwide
Amount: $1,000,000 USD to $500,000,000 USD & Up (No Cap)
Underwriting Fee: On transactions under $5,000,000 USD, the client must typically have between 1% to 2% cash against total project costs to paid in stages for the capital raise over the period of time it takes for that capital raise. On larger transactions the cost of the capital raise
can be as low as 0.10% against the total funded amount.
Terms: Up to 30 years amortization once project is cash flowing, interest only during construction.
Points: 10 to 20 points are built into the funding plus broker points
Collateral: All company assets either existing or created by the funding
Interest rate: For projects, approximately 4.5% to 8.5% per annum interest only May vary by market conditions
Third Party Reports: Client is responsible at clients expense for any and all underwriting fees, reports, appraisals and any other type of third
party compilation reports needed to close the project, prior to closing.
Relay financing without guarantee from the promoters – applicable to hotels and tourism projects only
Key points
. Relay financing give project promoters the ability to receive a letter of credit instead of direct funding.
. It enables promoters to fund their project without looking for guarantees
. Under this program, the guarantee bank will make available their bank instruments upon the completion of project appraisal.
. The instrument is issued in favor of the local bank that should be able to passed same to their investment banking Group to raise funds for the project
using the cash backed SBLC as a collateral.
. The funding bank which is separate from the guarantee bank will take the construction risk and ensure that the project is completed.
. The funding bank also arrange the Operation and Management group (O&M) that will remain in place until the loan is fully paid back.
. The funding bank will cash the SBLC upon completion of the project with management in place.
. The funding bank will create a legal mortgage on the asset created and manage the project receivables and ensure loan repayment.