Credit Enhanced Lending pertains to commercial and corporate debt financing where the borrower is capable of providing a financial guarantee to secure the principal and interest of the requested financing.  Acceptable types of loan guarantees are stated below and include credit enhancements such as stand by letters of credit, insurance guarantee bonds, municipal and government loan guarantees and letters of guarantee from foreign banks. 

 

We are able to provide this private lending service to US based borrowers as well as internationally qualified borrowers.  This financing solution is a preferred method for difficult to finance projects and transactions such as resorts, casino’s, mining operations, oil & gas development, transportation and energy related projects that may be located in geographical locations that are unattractive to most banks and institutions such as China, India, South America or Islands and small countries where political and financial risk may be present.

  

 

Type of Transactions Considered:

• Most private or public companies including corporate development, refinancing of existing debt, expansion, re-capitalizations and acquisitions financing

• Project or infrastructure developments, expansion or recapitalizations

• Government or public sector projects and financing requests

• We do not in any circumstances buy or sell any type of loan guarantee or credit enhancement

Geographical Locations:

 

Globally with only limited restrictions.  Acceptable areas include, but are not limited to:

North America, China, Taiwan, Hong Kong, Korea, Singapore, United Kingdom, Africa, Middle Eastern countries, Pacific Rim, and South America

 

Transaction Size:

 

Minimum US $5 Million

 

Additional transactions and funds can be arranged for acceptable larger transactions on a case-by-case basis. We prefer transactions of US $15 Million to US $150 Million and more, but will accept as low as $5 Million in special situations.

 

Loan Security / Collateral:

 

Virtually all project finance transactions that are successfully funded include some form of credit enhancement or financial guarantee to secure the transaction’s principal and interest payments in the event of a default of loan payments to the lender. We will consider additional loan security and financial guarantees with a credit rating of "BB" or higher assigned by a credit rating agency such as Standard & Poor’s or Moody’s or other acceptable rating agency. 

 

This type of financial guarantee and / or credit enhancement can be in the form of:

• Standby Letter of Credit (US and foreign banks)

• Letter of Guarantee (foreign banks only)

• Letter of Insurance Guarantee (large domestic and foreign insurance companies)

• Unsecured Promissory Notes of a Fortune 500 company or other large corporations

• Fortune 500 companies may be direct borrowers or guarantors for other borrowers

• Municipal / Institutional Guarantee of a large municipality municipal agency, or institution

• Co-guarantee of borrower's Unsecured Promissory Notes by an accepted major commercial bank or other acceptable guarantee-issuer. "Par Aval"

• Sovereign guarantees of many foreign countries are accepted – case by case

• Sovereign government guarantees or Standby Letters of Credit (SLC) issued by a designated commercial bank in the subject foreign country at the direction of authorized government officials

• Government's irrevocable, unconditional commitment for foreign loan repayment to its designated issuing bank and the Lender's bank secures the issuance of SBLC

• Some sovereign government guarantees must be "confirmed or endorsed" by a major foreign bank due to adverse economic conditions in those countries

• Assignments of guarantees and other credit enhancements cannot be accepted

Standard Terms:

 

The terms of any specific transaction will vary depending upon the strength of any particular project and requested transaction and based upon the credit risk associated with the transaction. Typically for transactions that possess a strong project and are capable of providing an acceptable financial guarantee rated approximately "AA" or even "A" in some cases the interest rate will be between 5% and 6% annually based on the current market rates. These rates are sometimes based on LIBOR or US Treasury Rates for the most credit worthy borrower and on the US Prime rate for lower credit quality transactions. Other terms are within normal standards of international project financing and are determined on a case by case basis.

 

Due Diligence and Information Requirements:

• Business or Project Plan and Executive Summary

• Formal funding request

• Detailed use of funds

• All information available regarding any credit enhancements or financial guarantees that can or will be provided to secure the transaction including the guarantor issuers contact information.  Written confirmation from the proposed guarantor is also preferred evidencing the borrower’s ability to arrange the necessary loan guarantee should the lender approve the loan request

• Lender will perform only limited due diligence.  No third party reports are required where an appropriate financial guarantee can be provided

• The project or company must be financially viable and capable of servicing the debt comfortably

How to Proceed:

Potential clients need to submit an executive summary and a brief loan request.

Upon review, if interested, a complete and detailed business plan and additional documentation will be requested.