We work directly with an international investment firm that is very experienced in providing funding for worldwide government projects and infrastructure, including Africa, Asia, Middle East, Russia, and most nations. The lender:
- Has $40B USD under management
- Has 40 years experience
- Has lent or invested $135B USD worldwide in the last 10 years
- Is open to most government (and corporate) projects worldwide, $20M USD - $20B USD
- Has provided a $500M USD loan to an Asian government in October 2017 (among many other loans)
- Will provide General references and other due diligence information to the government/client later in the process, but prior to the government/client needing to sign documents with the lender, or make the escrow payment
- Will NOT modify their procedures, even for the government (see below)
The government MUST follow the lender's procedures - including payment of 1%-5% of the loan amount, into a third-party securities firm escrow account (like Deutsche Bank), usually in the USA. This payment is made into escrow:
- AFTER the government has received and agreed to terms
- AFTER they've had the chance to do their own due diligence on the lender and the escrow agent
- AFTER they've agreed to the draft loan agreement and draft escrow agreement
- BEFORE Loan Funding
The Escrow agreement provides a 100% guarantee for the escrow funds:
- The escrow funds will only be released to the lender when the client/government's bank notifies the escrow agent that the client/government has received the loan funds
- If the loan is not funded (i.e. the client/government does not receive the money) the escrow funds are returned in full, 100%, to the client/government
- The lender has a 40-year, 100% success rate funding projects after board approval (i.e. by the time the escrow payment is made)
TERMS (Just like corporate / commercial project funding):
- Borrower only repays 45%-55% of the loan amount over 10 years - That's like getting half of the loan for F R E E!
- Fees and costs can usually be added into the loan amount, with the escrow payment refunded to client at funding
- Fast Funding - Funding usually occurs 15-30 days after funds are paid into escrow (30-60 days after initial submission, depending upon complexity of project and responsiveness of borrower)
- Very competitive rates under the Sinking Fund Debt Financing Program:
- 4.5%-5.5% interest annually
- 10 years, interest-only loans
- No profit sharing/equity stake - you keep full control and ownership of your project and company
- No repayment of the principal! The Principal is paid back via the sinking fund structure, and the client is only responsible for the interest payments.
For example, on a $100 million USD loan, the borrower would ONLY pay $45-$55 Million USD in interest-only payments over 10 years!
1. Project Name
2. Country where Project is located
4. Brief, 1-2 sentence description of project
5. Amount Needed - $20 Million USD - $20 Billion USD
6. You MUST also include the name and title of the Government Official.
(NOTE: FOR CORPORATE Project funding (i.e. non-Government funding) the procedures, terms, safeguards and requirements are exactly the same EXCEPT non-government clients must provide Proof of funds for at least 2% of the loan amount at submission).
I'll then contact you to arrange a phone call with the government official to go over the program, especially the escrow payment requirement, and answer any questions, prior to submitting the loan request to the lender.
Once submitted, we'll usually hear within 5-10 business days if the lender is interested in reviewing the project for funding (most government projects receive preliminary approval). We'll then send additional forms for the government to fill out.
Additional questions that are frequently asked (FAQ's):
1. Name of the lender - Will be provided later, when you receive loan terms
2. Will the lender provide references? Yes, the lender's legal department will provide general references later in the process. (They have funded many, many government projects, including a $500M USD Government project in Asia in October, 2017)
3. Does the lender have his own funds to fund my project, or does he have to go out and find the money? The lender is an Investment Bank with $40B USD under management. It is their own funds. They have funded $135B USD over the last 10 years.
4. Can I choose the escrow agent? The lender will choose the third-party escrow agent, a top 25 securities firm (such as Deutsche Bank). Client will agree to the escrow agent and escrow agreement prior to making the escrow payment.