In this program the borrower needs a viable project whose cash flow will support interest payments since only the prinicpal is guaranteed. He/she will also need a lender to do the deal. The lender could be anywhere in the world.
The Lender must be a bank that must be "A" rated or better.
 

PROGRAM PROCEDURE

The investor will deposit the funds into an escrow account (subject to the acceptance of the receiving banker). All funds are brought into the depository escrow via the international banking wire system i.e. S.W.I.F.T  being Legal, Clean and Cleared funds (bank to bank). The necessary references and availability documentation will be provided by The Fund Provider prior to closing at the appropriate time. 

The Fund Provider will purchase the investment instrument or the Specially Structured "CD" from your accepted Bank, or if your bank is not  "A" rated or better Bank, the purchase will be made from your bank's up-line bank . 

This "CD" will have two separate parts: 

1.  The principal only part (P.O.) or (corpus), and 
2.  The interest only part (I.O.) or (coupons).

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". 
 

THE LOAN STRUCTURE

Assuming your project needs a US$50,000,000 loan. 

• We will increase that amount by about 114% + 6%  commission which will equal US$114,000,000 +/-.

• We will buy a 10-year “Special Certificate of Deposit" (CD) or other acceptable financial instrument from your banker for that amount (US$114,000,000) with a return (yield) of 7% per annum.

• We will assign the body of the "CD" to you to pledge to the bank for your loan i.e. you will offer this "CD" or instrument as the collateral for a loan of an equal amount of the face value i.e. US$114,000,000.

• At closing, the loan proceeds (US$114,000,000) will be distributed as follows: 

• 50%  (US$57,000,000) back to The Fund Provider in consideration for the transfer of  the title of the "CD" (the principal only portion) to the project which in turn you will pledge back to the Lending Bank as the collateral for your loan. 
•   6%  (US$6,840,000) total fees and commissions.
• US$50,160,000 for the Project.

• At closing, the The Fund Provider will recover his capital plus 1-2% profit in this manner: 
• 50% back to him from the face value of the loan amount. 
• The Fund Provider will sell the "CD" coupon portion in the Discounted Notes Market for say 75% of its "future value", this is called the "present value" of the note or the coupon. The Fund Provider will handle the full procedure of the sale of the coupon to the secondary market through his own contacts and brokers.
• The future value of the coupon portion for the US$50,000,000 example above = US$114,000,000 X 7% a years X 10 years = US$79,800,000

• The total of the 50% of the loan amount and the sale of the note (coupon) 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 Free. 

• 3% commission on the whole amount of the transaction (included in the 6% fees). 

The Lending Bank: 

• Makes a fully collateralized loan. 

• Is guaranteed the payment of the loan principal with its own "CD" at maturity. 

• Can be in an absolute “NO LOSE” position.

• Is making 1% per annum on the total loan amount of US$114,000,000 , that is US$1,140,000 a year for the next 10 years for a total of US$11,400,000 . This is the margin between the 7% yearly yield on the Special "CD" that the bank pays out and the 8% 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 10% on it.

• Is making a 100% secured loan.

• Has the power to supervise the project's operation to establish its legality and the legality of the entire transaction. 

• May have additional security from the project e.g land, property, corp. shares etc.

• Fast closing. Normally the negotiations between the bank and The Fund Provider 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 only have to service the interest on the 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 Special "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 similar: 
“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 wire-transferred from his major bank to your bank and from your bank to your project. 
 

COST

Consultation Fee of US$2,500

When you decide to continue with our program, this fee will be payable together with the signing of our "Client Agreement". This fee will include the processing of your application, preparation for a bank presentation, consultation and communication costs.

Personal Presentation:

If you decide to have us meet with your banker and make the presentation and/or meet at your bank for the closing, you will be required to invite our team of 2 or 3 at your own expense. Such expenses will include- but not be limited to- airfare, hotel, ground transportation and the group daily retainer fees.
 

DISCLAIMER

• This is not a solicitation. 
• We, as financing consultants, introduce this offer to clients and intermediaries that show their interest in learning about such opportunities when available. 
• We introduce this offer on behalf of our sources and we accept no responsibility for any errors, omissions or variations this offer might have or that might occur during the process of the client's application.