|Our Investor/Fund Provider has designed a
unique programe, which can
be successful in providing funds to projects and is 100% cash
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
in the world.
The Lender must be a bank
that must be "A" rated or better.
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.
being Legal, Clean and Cleared funds (bank to bank). The necessary
and availability documentation will be provided by The Fund Provider
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
rated or better Bank, the purchase will be made from your bank's
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 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
financial instrument from your banker for that amount (US$114,000,000)
with a return (yield) of 7% per annum.
This loan -being fully
the bank's own "CD" or instrument-
will be a 8% interest payments only loan. However, The lender bank has
to only approve the project for funding subject to the guarantee of
Thus what the lending bank and the borrower agree as to what interest
the borrower will pay for his loan is between the lender and the
- We will assign the body of the "CD" to
you to pledge to the bank for
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
- 50% (US$57,000,000) back
The Fund Provider in consideration
for the transfer of the title of the "CD" (the principal only
to the project which in turn you will pledge back to the Lending Bank
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%
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
Market for say 75% 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 his own
- The future value of the coupon portion
for the US$50,000,000 example
= 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
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
- 3% commission on the whole amount of the
transaction (included in the
The Lending Bank:
- Makes a fully collateralized loan.
- Is guaranteed the payment of the loan
principal with its own "CD" at
- Can be in an absolute “NO LOSE” position.
- Is making 1% per annum on the total loan
amount of US$114,000,000 ,
is US$1,140,000 a year for the next 10 years for a total of
. This is the margin between the 7% yearly yield on the Special "CD"
the bank pays out and the 8% interest per annum that the bank charges
the interest on the loan. Notice that the bank does not put up any
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
and the legality of the entire transaction.
- May have additional security from the
project e.g land, property, corp.
- 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 only have to service the interest on
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
Consultation Fee of
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
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
limited to- airfare, hotel, ground transportation and the group daily
is not a solicitation.
as financing consultants,
introduce this offer to clients and intermediaries that show their
in learning about such opportunities when available.
introduce this offer on behalf
of our sources and we accept no responsibility for any errors,
or variations this offer might have or that might occur during the
of the client's application.