The success of this programe is based on two parts:

First part : The purchase of a “ Specially Structured “ certificate of deposit “CD” or any other similar and acceptable financial instruments as credit enhancement to facilitate the deposited matching funds.

Second Part : 25% of the Loan amount will be deposited back with the lending bank to set up an income generating investment portfolio to pay off the loan interest.
 

PROGRAM PROCEDURE

The Fund Provider will call its investor's trust account to deposit the fund 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 top 150 Bank, or if your bank is not one of the top 150 Banks, 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

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

• 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% profit 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 Notes Market for say 60% 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 their own contacts and brokers.

• The total of the 54% 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. 

• 1% commission on the whole amount of the transaction (included in the 3% fees). 

• 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 maturity.

• Is securing the payment of the loan interest from the proceeds of the investment 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 , that is US$5,000,000 a year for the next 10 years for a total of US$50,000,000 . This is the margin between the 8% yearly yield on the Special "CD" that 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 department, thus charging commissions and transaction fees for 10 years.

• Is adding the 25% to its investment portfolio.

• 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 legality and the legality of the entire transaction. 

• Fees of issuing the “CD” will be paid by The Fund Provider (no cost to the bank).

• If 25% of the loan amount is not enough to generate the income that’s needed to generate the required income stream to service the interest debt portion 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 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 will not have to service your debt. You will not have to pay back the 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 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.

COST

This will include the processing of your application, consultation and communication costs.

Personal Presentation:

This 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 presentation with the banker in your presence. Such expenses will include- but not be limited to- airfare, hotel, ground transportation and the group daily retainer fees.

Reminder: Any & all advanced expenses/monies are accounted for & credited back to the payer on the project side at closing.
 

W A R N I N G

Remember:
This Is Generic &  Not Ready For Bank Presentation. 
This Is Presented To You For Introduction Purposes Only. 
Do not attempt or be tempted to present any of this information to your bank. 
Extraordinary large figures have a tendency to overwhelm most conservative bankers. If you try to explain the Presentation yourself without our investor’s 26 years of experience and your customized "Bank Presentation", you will NOTsucceed 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 the rest to us.