As a mandate of an International Financial Corporation, I hereby offer a loan under the following terms and conditions.
Note: Funds for this particular transaction are limited. Proposal will be closed when available funds are exhausted. First come, first serve.
Type of transaction: LOAN SCHEME FOR PROJECT FINANCING
Advantages: NO COLLATERAL, NO BANK GUARANTEE
Conditions: BORROWER MUST BLOCK 10% OF REQUIRED LOAN AMOUNT IN ANY PRIME BANK THAT OPERATES ON A SWIFT SYSTEM
- Borrower confirms willingness to block 10% of the project cost in its bank by issuing Pre-Advice information Swift-799 to the Lender’s bank.
- After Lender’s bank receives the information Swift 799, Lender signs agreement with the Borrower.
- After signing of agreement, bank of the borrower issues SBLC via SWIFT MT 760 based on the 1% blocked fund to the Lender’s bank.
- Within a period of 3 months from receipt of the SBLC, the lender releases full project amount to the borrower. At this point, the Borrower pays 10% of the loan amount as service charges.
- Lender’s representative will be member of Board of Directors of the project to be executed. This is to ensure that the funds are used for that particular project and promptly refunded to the Lender when due, as there is no guarantee or collateral from the Borrower.
- The loan is valid for 1 year from date the borrower receives the fund.
- At the end of 1 year, the borrower pays backthe borrowed amount to the Lender, plus interest rate of 1% and can terminate the loan.
- If, however, the borrower wants to elongate the loan for another one year term, then he pays 2% prolongation fees and continues to use the amount for another 1 year. Apart from the prolongation fees, the borrower also pays 1% as service charges. The process can continue revolving for a period of 5 years.
EXPLANATIONS ON THE TRANSACTION
- Borrower blocks 10% in his bank for 1 year (money is not moved to anywhere. It remains as the asset of the borrower for I year).
- Three months after blocking the 1% in his bank, the Lender transfers the loan amount e.g. $10 million into the Borrower’s bank. At this point the Borrower pays 1% as service charges.
- Again at the end of the one year term, Borrower pays another 1% to the Lender and refunds the $10 million back to the Lender.
How to Start Working with Us:
We require an official LOI listing all types of bonds your company wants to redeem and cash. Our company will issue an official letter in return, based on your request for this matter.