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.

 

Loan Amount

30% to 80% of the financial instrument value. Minimum loan amount is $500K USD.

 

Currency

USD, CAD, EUR

 

Collateral

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.

 

Interest

10% to 15%, payable upon loan disbursement.

 

Payment Terms

Interest deducted from loan disbursement. Principal due in single lump sum upon loan maturity.

 

Extensions

Extensions available by mutual agreement, subject to extension of financial instrument.

 

Underwriting Process

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.