Credit Enhancement
An alternative structured financing proposal available for consideration by projects worldwide
We have available an alternative structured financing offer which can be effective in assisting projects with the acceptable cash collateral to cover both the principal and the interest portion of the loan.
The following brief summary will describe the purchase of acceptable collateral from the borrower’s candidate lending bank as well as provide a solution to the debt service risk. Both techniques coupled together will provide the project-borrower’s lending institution a strong level of comfort and security without compromising normal lending practices.
Several applications to consider…
• Project Collateral
• Project Financing
• Bank Collateral
• Debt Restructure
• Venture Capital Financing
• Offshore Projects
• Offshore Funding
• Foreign Banking
• Real Estate Financing
• Commercial Financing
• Securities Financing
• Mergers and Acquisitions
For banks, increased attention to risk management has spurred the growth of financial transactions relying on cash collateral to manage large credit risks, such as those between start-up projects, real estate development, acquisition leveraged buyouts, etc.
For projects, there are two major issues that ALL banks are concerned with. Borrower’s collateral and the ability to pay back the funded amount - debt service risk.
The Solution...
A method of arranging to provide 100% cash collateral is used to the project-borrower’s credit enhancement. This cash deposit (bank-to-bank) from our funds provider is used to purchase a "Specially Structured" CD or bank trust note (not market driven) in which the project's funding bank creates. This CD (credit enhancement) is assigned to the project by the funds provider and then pledged back to the project's bank. The CD is now utilized to serve as acceptable collateral for the principal portion of the project loan.
Out of the proceeds of the funded loan amount, a portion will be pledged back into a custodial account at the project's funding bank. This is an income generating portfolio account, which will serve as acceptable collateral and mitigate the debt service risk for the interest portion of the project loan. The project-borrower’s funding bank will manage &/or operate this portfolio as the premium income will accrue in this account until all of the annual interest payments (debt service) are paid to the project's funding bank.
The remainder portion of the loan proceeds will cover the cost of collateral, misc. placement fees, and of course, the "walk-away" fallout amount to fund and capitalize the project - without the burden or responsibility of repaying the loan.
To understand the complete details of this alternative structured financing proposal, you are invited to contact us to request an INTRODUCTORY OVERVIEW package. This information will contain explicit details as well as procedures and guidelines.
**We do not comment on potential projects without a completed Consulting Agreement with Addendum A. Please read everything here so that you have a clear understanding of our programs and how they work.
Submit Consulting Agreement, and Business Plans/Executive Summary to FPN@globalprojectfinancing.com
It is our strict policy to allow meetings only AFTER receiving a fully completed and signed Application Form and Consulting Agreement.
GLOBAL PROJECT FINANCING GROUP provides full written disclosure about our financing processes and mechanisms, and exactly how and why they work. We will send you a full package of information materials by e-mail. We ask you to review them attentively before requesting consultation or submitting your Application.
Because of great demand for our services and a large volume of agreements, It is impossible for us to allow meetings merely for acquaintance or introduction. So all related meetings would be for nothing. Financing requires intensive work on voluminous documents, and constant negotiations spanning many time zones. We have an obligation to our clients to give highest priority to delivering results on projects.
Project Funding Solutions / RE Investing
Conventional & Non-Conventional
Domestic & International
Commercial, Corporate, and SMEs Funding
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Send your funding requests to:
Email: FPN@globalprojectfinancing.com
“Global Project Financial Solutions"
International Commercial Loan,
Collateral Enhancement and Credit Enhancement
LEGAL DISCLAIMER: This document is for informational purposes only, and is not a solicitation for the purchase or sale of any securities, nor a solicitation of investment funds or placement. This document does not represent the policies of any bank or financial institution, is not intended as a confirmation of any transaction, and does not consist of any legal, securities related or tax related advice.
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