The success of this programe is based on
First part : The purchase of a
“ Specially Structured
“ certificate of deposit “CD” or any other similar and acceptable
instruments as credit enhancement to facilitate the deposited matching
Second Part : 25% of the Loan
amount will be deposited
back with the lending bank to set up an income generating investment
to pay off the loan interest.
The Fund Provider will call its investor's
trust account to deposit
the fund into an escrow account (subject to the acceptance of the
banker). All funds are brought into the depository escrow via the
banking wire system i.e. S.W.I.F.T being Legal, Clean and Cleared
funds (bank to bank). The necessary references and availability
will be provided by The Fund Provider prior to closing at the
The Fund Provider will purchase the
investment instrument or the Specially
Structured "CD" from your top 150 Bank, or if your bank is not one of
top 150 Banks, the purchase will be made from your bank's up-line bank
This "CD" will have two separate
Both parts are legally negotiable and assignable. This is what makes
"CD" different from the typical market driven "CD".
- The principal only part (P.O.) or
- The interest only part (I.O.) or
This special "CD" is then assigned to the
project by The Fund Provider.
Next, the project will pledge the "CD" to
the lending institution to
guarantee & repatriate the principal loan amount.
The Lending Bank will make a loan to the
project equal to 100%
of the face amount of the "CD".
Assuming your project needs a US$50,000,000
We will buy a 10-year “Special”
of Deposit "CD" from your banker
for that amount (US$250,000,000) with a return
of 8% per annum.
We will offer this "CD" as the
for a loan of an equal amount
of the face value of the "CD" i.e. US$250,000,000.
This loan -being fully
the bank's own "CD"- will be a
10% interest only loan payable annually in arrears.
At closing, the loan proceeds
(US$250,000,000) will be distributed as follows:
54% Back to The Fund
in consideration for the transfer
of the title of the "CD" (the principal only portion) to the
which in turn you will pledge back to the Lending Bank.
25% Will be deposited at the
Lending Bank for creating an
investment portfolio to exclusively satisfy the loan's interest only
until paid in full or may be deposited with a Major International
in a Treasury Investment Portfolio as an Interest Hedge Account.
The net net amount Providerer
to brokers will equal the amount
needed to fund the project.
- We will increase that amount 5X or so,
that is 5 times or so the amount
you need for your project:
5 X US$50,000,000 = US$250,000,000.
- At closing, the The Fund Provider will
recover his capital plus 1-2%
in this manner:
- 54% back to him from the face value of
the loan amount.
- The Fund Provider will sell the "CD"
coupon portion in the Discounted
Market for say 60% of its "future value", this is called the "present
of the note or the coupon. The Fund Provider will handle the full
of the sale of the coupon to the secondary market through their own
- The total of the 54% of the loan amount
and the sale of the note
must equal a minimum of 101% of the capital used to purchase the "CD",
thus The Fund Provider will make at least 1% on his capital on that day
completely Risk Free. When The Fund Provider does this once a week for
50 weeks a year, he will make 50% profit a year, totally Risk
- 1% commission on the whole amount of the
transaction (included in the
- The 25% in the investment portfolio will
return to The Fund Provider Providerer
the paying off the loan interest in full.
The Lending Bank:
- Makes a fully collateralized loan.
- Is guaranteed the payment of the loan
principal with its own "CD" at
- Is securing the payment of the loan
interest from the proceeds of the
of the 25% .
- Is in an absolute “NO LOSE” position.
- Is making 2% per annum on the total loan
amount of US$250,000,000 ,
is US$5,000,000 a year for the next 10 years for a total of
. This is the margin between the 8% yearly yield on the Special "CD"
the bank pays out and the 10% interest per annum that the bank charges
for the interest on the loan. Notice that the bank does not put up any
money for the loan yet making 20% on it.
- Is having the 25% from the loan proceeds
invested with its investment
thus charging commissions and transaction fees for 10 years.
- Is adding the 25% to its investment
- Does not have to rely on the success of
the project to service the debt
(100% secured loan).
- Has the power to supervise the project's
operation to establish its
and the legality of the entire transaction.
- Fees of issuing the “CD” will be paid by
The Fund Provider (no cost to
- If 25% of the loan amount is not enough
to generate the income that’s
to generate the required income stream to service the interest debt
on the loan, the needed percentage can be negotiated to meet the bank's
level of comfort.
- Fast Closing. Normally the negotiations
between the bank and The Fund
to reach the comfort level of the bank, by modifying some of the terms
and/or the final figures, take 2-3 days and the closing is achieved on
the 4th day.
- You will not have to service your debt.
You will not have to pay back
principal or the interest on your loan, ever.
- Your project will be debt free.
- You will have full control of your loan.
1) Present your
project’s Executive Summary or Business
Plan to your bank or a bank of your choice. The Bank must be "A" rated
or better, or has an up-line major prime bank that will sell us the
"CD" or similar.
2) Ask the banker to
review it and see if a loan
can be arranged for your project.
3) If the bank rejects
your loan application for
whatever reason, ask the banker the following question or
“Would you consider arranging the loan for
my project if I provide
100% CASH collateral to the bank for this transaction?”.
4) If the banker
indicates that he would be interested,
explain to the banker our offer.
6) When the banker
informs you of his ongoing interest
in a form of letter, we will communicate with him directly.
7) Following our
presentation and his due diligence,
we will meet with your banker and the closing of your loan should take
place. The Fund Provider’s clean and clear funds will be
from his major bank to your bank and from your bank to your
will include the processing of your application, consultation and
is step number “ 7 ”
in the “Procedure” above. You will be required to invite our team of 2
or 3 at your own expense to explain, discuss and negotiate their
with the banker in your presence. Such expenses will include- but not
limited to- airfare, hotel, ground transportation and the group daily
& all advanced expenses/monies are accounted for & credited
to the payer on the project side at closing.
Is Generic &
Not Ready For Bank Presentation.
To You For Introduction Purposes Only.
attempt or be tempted to present any of this information to your
have a tendency to overwhelm most conservative bankers. If you try to
the Presentation yourself without our investor’s 26 years of experience
and your customized "Bank Presentation", you will succeed
and you will loose that bank as your potential lending bank. We ask you
to do steps 1 to 4 as explained in the “Procedure” above and to leave
rest to us.