Financial Instrument Quality
In assessing the quality of the financial instrument we draw on multiple sources of data/information including but not limited to: corporate credit ratings and political risk ratings issued by the major ratings agencies, legal opinions on the contractual terms of various instrument, and the advice/opinions of industry subject matter experts and practitioners.
30% to 80% of the financial instrument value. Minimum loan amount is $500K USD.
USD, CAD, EUR
Collateral usually takes the form of a Bank Gaurantee / Standby Letter of Credit from investment grade bank. A debt or equity security may also be acceptable as collateral if there is a sufficiently liquid secondary trading market in the security.
10% to 15%, payable upon loan disbursement.
Interest deducted from loan disbursement. Principal due in single lump sum upon loan maturity.
Extensions available by mutual agreement, subject to extension of financial instrument.
The Financial Instrument Loan is underwritten primarily based on the quality of the financial instrument. Borrower credit-worthiness and/or project feasibility take secondary importance. The lender will undertake customary legal and financial due diligence on all material aspects of the financing transaction including but not limited to the collateral, the borrower/project and the use of funds.