alternative project funding
ALTERNATIVE PROJECT FUNDING PRODUCT SHEET April 2012
(A) Loan Size:
USD 300 million and above
Product:
Suitable for organizations having viable projects and business expansion or refinancing plans that require substantial medium-term funding.
Lender:
Hong Kong Corporation.
Transacting Bank:
Standard Chartered Bank, Hong Kong (or other of equal ranking).
Interest Rate:
5%-12 % p.a. fixed for term (Negotiable)
Collateral:
The Funding Source does not ask for directors’ guarantees or any secondary security, but reserves the right to place a 51% (maximum) charge over the project or initiative being funded, either individually or as part of Borrower’s overall assets to provide the required collateral for the loan. Charges are lifted on repayment of loan In most cases, a SPV will be set up for the purpose of the transaction.
Term of Loan:
10 years (Negotiable)
Liquidity deposit:
2 % - 5% of loan amount in a zero-depletion account. (Negotiable)
Engagement Fees:
USD18,000 (One time payment. 50% refundable upon loan approval)
Funding Fees:
3% - 6% on approved loan amount
Timeline:
45 days from implementation of contract to delivery of first tranche funding
Guarantees:
The guarantees that secure the loan take the form of Borrower’s collateralized assets, in conjunction with a liquidity deposit to be placed in a zero-depletion account.
Borrower is always a signatory to the Bank instructions controlling the function of the account (under the customary terms of zero-depletion accounts, Lender is permitted to bring value and has the right of substitution of cash for financial instruments of a higher value).
The liquidity deposit is needed in the initial stage to secure a supplementary bank guarantees to collateralize the loan. Once the guarantees are delivered the conditions of the zero-depletion account will have been fulfilled, and the liquidity deposit becomes collateral for the loan along with the corporate-pledged assets for the account of the Lender/Guarantor.
PROJECT FUNDING - TERM SHEET
Page 1 of 6
(B) Loan Size:
Minimum USD 20 Million to USD 200+ Million
Product:
Projects will be considered globally including M&A, Real Estate, Natural Resources and all legitimate business purposes
Interest Rate:
5% -15% p.a. Simple Interest (Negotiable)
Term Of Loan:
5 -10 Years (Negotiable)
Liquidity Deposit:
3%-10% of loan amount in a zero-depletion account (Negotiable but minimum amount is USD 2 Million).
Timeline:
45 to 120 days from contract implementation to delivery of the first tranche funding
Funding Fees:
3% - 6% on approved loan amount
Engagement Fees:
USD18,000 (One time payment. 50% refundable upon loan approval)
Collateral:
Refer to (A) above
Guarantees:
Refer to (A) above
For All Programs : Initial Documents: 1.
Letter of Intent from Borrower requesting the exclusive services of Tyesun Capital Pte Ltd and conditionally accepting terms and conditions;
2.
Executive Summary (3-5-pages) providing an overview of the Project/Loan objectives, with the capital requirements in cash flow format, to include a proposed drawdown schedule;
3.
Complete Corporate/Private Profile, with professional advisor/s and banking contact information. (Additional documents may be requested.)
Procedure: 1. Borrower submits request for loan, accompanied by 3-5 pages Executive Summary to include cash flow projections and details of management team. 2. When the Funding Source replies conditionally that funding is available, Borrower submits LOI appointing Tyesun Capital Pte Ltd exclusively, at the same time providing bank and professional advisor details 3. The Funding Source issues Conditional Offer, valid for 10-15 banking days; 4. Borrower provides all information requested in Offer Letter, and acknowledges ability to allocate liquidity deposit. 5. Drawdown schedule agreed with Borrower; 6. Contract issued and signed by both parties; 7. Liquidity deposit allocated by Borrower; 8. First drawdown against contract schedules per the agreed banking days after Borrower allocates liquidity deposit. (This procedure can be negotiable under certain conditions). ALTERNATIVE FINANCING – PRODUCT SHEET Page 2 of 6
Additional Information 1. Qualifying projects can be start-up or existing; 2. Borrowers may be private as well as corporate; 3. Interest and capital repayment holidays can be negotiated by arrangement; 4. Rescheduling of contract terms can be flexible by prior agreement.
Tyesun Capital Pte Ltd reserves the right to make changes to conditions and procedures at its discretion and without obligation to inform any party other than those currently negotiating specific funding transactions.
NOTICE: It is understood that Tyesun Capital Pte Ltd are acting as an alternative funding facilitator of companies that seek funding. We are not licensed as a securities, business, insurance, investment, or real estate; broker, agent, dealer, or advisor, and shall have no authority to enter into any commitments, or to negotiate the terms of any Transaction, or hold to any funds or securities in connection with any transaction, or to perform any act which would require Tyesun Capital Pte Ltd to become licensed as a securities, business, insurance, investment, or real estate; broker, agent, dealer, or advisor. Tyesun Capital Pte Ltd will not engage in any negotiations whatsoever on the behalf of client. Tyesun Capital Pte Ltd will have no responsibility, nor will make recommendations, concerning the terms, conditions or provisions of any agreement between the client and alternative funding provider , or the manner or means of consummating the Transaction. This document is not intended for the purpose of buying, selling, or trading securities, or offering council or advice with respect to such activities. Tyesun Capital Pte Ltd bears no responsibility for decisions taken as a result of the contents of this document. All numbers and figures contained in this document are approximations and have been provided to Tyesun Capital Pte Ltd by sources of capital Tyesun Capital Pte Ltd has interacted with in order to facilitate the Transaction. Tyesun Capital Pte Ltd shall bear no responsibility for any losses incurred as a result of reliance on these terms and figures. Tyesun Capital Pte Ltd shall facilitate direct interactions between the addressees of this document and sources of capital and their representatives. Addressees of this document shall thereafter conduct their own due diligence. Tyesun Capital Pte Ltd bears no responsibility for any losses incurred as a result of introductions made. Origination shall be defined as the time when all legal contracts and any financial instruments as may be agreed between Tyesun Capital Pte Ltd and the addressees of this document, are completed and executed, and Tyesun Capital Pte Ltd facilitates an introduction between sources of capital and addressees of this document. All fees mentioned in this document are exclusive of any fees Tyesun Capital Pte Ltd may have in the transaction. Fees mentioned herein are in addition to Tyesun Capital Pte Ltd fees. Tyesun Capital Pte Ltd does not guarantee that capital sources shall source funds to the addressees of this document as a result of introductions being made between them and addressees of this document. Tyesun Capital Pte Ltd shall bear no responsibility for losses sustained as a result of a capital sources’ decision to desist from such sourcing of funds.
ALTERNATIVE FINANCING – PRODUCT SHEET Page 3 of 6
FAQ 1. Who is Tyesun Capital Pte Ltd (‘Tyesun’)? Tyesun is a private limited company registered in Singapore. The directors and management have wide experience in international financial markets, and through its resources, Tyesun can offer project fund sourcing to approved borrowers on favorable terms, with transparent procedures and fast turnaround.
2. What category of client does Tyesun prioritize? Tyesun works primarily with large corporate entities (these often having the backing of government guarantees), as well as multilateral agencies, NGOs and charitable trusts. As an upgrading of previous program, funding is now available for refinancing and ongoing development of existing projects. Borrowers should ideally be working with competent project management organizations.
3. What sort of numbers are we talking about? It is not viable either for the Borrower or for Tyesun to arrange funding for less than twenty million Euros/ USD. There is no upper limit to the funding available for viable projects.
4. How is Tyesun different from other loan facilitators? By employing innovative financial engineering techniques Tyesun is able to offer low interest and long (normally negotiable) repayment terms.
5. Who is responsible for the Due Diligence on accepted projects? The DD will be commissioned by Tyesun’s Funding Source using major accounting practices and paid by the Client. The guarantee provider also reserves the right to carry out its own due diligence.
6. What procedure has to be followed with the financial guarantee that underwrites the funding? Once exclusively retained, Tyesun requires a liquidity deposit (a percentage of the loan value) to be allocated to a zero-depletion account on which Borrower will be joint bank signatory for the instructions governing account operation. Borrower must evidence capability of providing the liquidity deposit on inprinciple approval of loan application. Charges over assets that secure the loan will be instrumented by the Funding Provider and Borrower’s legal & financial advisors.
7. What financial instrument/s underwrite the loan? The liquidity deposit and the charge over the Borrower’s assets is used to put in place the guarantee that backs the loan. The fee is payable to the guarantee provider on bank-advice of delivery of guarantee, and the charge over Borrower’s assets will be lifted on loan repayment.
ALTERNATIVE FINANCING – PRODUCT SHEET Page 4 of 6
8. How are the loan funds provided? Prior to contract, the Funding Source and Borrower agree a schedule of disbursements for the drawdown of funds that can range from three months to end of the loan term. Drawdown can commence as early as 30 banking days (six calendar weeks) after guarantees and collateralized security is in place and will continue periodically according to the agreed schedules until the entire loan sum has been disbursed to Borrower.
9. Do interest and amortization payments begin immediately? Normally yes, but the standard Funding Source contract can by arrangement allow for an interest and amortization holiday; in such cases the relevant amounts will be additional to the loan sum and amortized according to the Agreement.
10. How can the loan repayment period be so extended? The majority of clients are financing critical infrastructure projects that necessitate long amortization periods and the Funding Source does its best to accommodate such requirements.
11. What happens in the event of default by Lender or Borrower? If the Lender/ Funding Source does not meet its contractual commitments, the Agreement will be cancelled immediately regardless of termination date. Borrower will not be legally obliged to repay any funds received up to that point or pay any outstanding interest charges.
If the Borrower defaults on interest or amortization payments, the Funding Source would be within its legal rights to foreclose on the securitized collateral held. Nevertheless this would be an ultimate option and Borrowers should approach the Funding Source for the purpose of renegotiating payment terms should delays become unavoidable for whatever reason.
12. Through which bank is the funding sourced? Standard Chartered Bank, Hong Kong, or other bank of equal standing.
13. Does the Borrower have to demonstrate ability to provide the fee? After in-principle approval of application Borrower must prove ability to make available the underwriting fee.
14. Can the funding formula described above be used for private investments? Yes. Corporate and private, as well as public-private partnerships.
ALTERNATIVE FINANCING – PRODUCT SHEET Page 5 of 6
15. What is the Client’s financial risk? The Client has no risk, only a win-win funding situation whereby for a nominal liquidity deposit, Borrower receives a funding package that can be applied to the largest scale infrastructure projects, such as power generating plants, airports and harbors.
The liquidity deposit is under the Borrower’s control and the Borrower may give instructions on the bank zero-depletion account where the liquidity deposit is placed. Borrower also has online access to his account with the Funding Source in order to keep updated on the financial aspects of the transaction. The liquidity deposit is paid to the guarantee provider once the collateral has been agreed and activated as the final element to release funds. The Funding Source is at all times able to evidence the funds allocated to individual Borrowers.
The Funding Source also makes a financial commitment by carrying out in-depth due diligence on the Borrower and the Borrower’s project/s, and by agreeing the delivery of the funds with the end-provider as required.
IMPORTANT NOTICE Tyesun and its Funding Providers, do not accept all applications for funding, even those that are compliant with its general policy. Applicants must show that they fully appreciate the financial implications, and that they have independently confirmed via their professional advisors and/or banking entities, that the statements made by Tyesun and/or its Funding Providers with regard to the Borrower’s security and the delivery of the contracted loan payments are correct. Comprehensive due diligence is undertaken on all applicants that reach pre-contract stage and any previous shortcomings or transgressions relating to fiscal or legal matters will result in the automatic disqualification of any applicant.
THIS DOCUMENT SUPERSEDES AND CANCELS ALL AND ANY PREVIOUS DOCUMENTS OF THE SAME TITLE THAT YOU MAY HAVE RECEIVED.
Tyesun Capital Pte Ltd reserves the right to make changes to conditions and procedures at its own discretion and without the obligation to inform any party that may not be already negotiating a specific funding transaction.
All negotiations with Clients and Client details will be maintained in the strictest confidence and no information of any kind relating to such matters will be released to third parties under any circumstances, with the exception of legal orders from recognized judicial authorities.
ALTERNATIVE FINANCING – PRODUCT SHEET Page 6 of 6
(A) Loan Size:
USD 300 million and above
Product:
Suitable for organizations having viable projects and business expansion or refinancing plans that require substantial medium-term funding.
Lender:
Hong Kong Corporation.
Transacting Bank:
Standard Chartered Bank, Hong Kong (or other of equal ranking).
Interest Rate:
5%-12 % p.a. fixed for term (Negotiable)
Collateral:
The Funding Source does not ask for directors’ guarantees or any secondary security, but reserves the right to place a 51% (maximum) charge over the project or initiative being funded, either individually or as part of Borrower’s overall assets to provide the required collateral for the loan. Charges are lifted on repayment of loan In most cases, a SPV will be set up for the purpose of the transaction.
Term of Loan:
10 years (Negotiable)
Liquidity deposit:
2 % - 5% of loan amount in a zero-depletion account. (Negotiable)
Engagement Fees:
USD18,000 (One time payment. 50% refundable upon loan approval)
Funding Fees:
3% - 6% on approved loan amount
Timeline:
45 days from implementation of contract to delivery of first tranche funding
Guarantees:
The guarantees that secure the loan take the form of Borrower’s collateralized assets, in conjunction with a liquidity deposit to be placed in a zero-depletion account.
Borrower is always a signatory to the Bank instructions controlling the function of the account (under the customary terms of zero-depletion accounts, Lender is permitted to bring value and has the right of substitution of cash for financial instruments of a higher value).
The liquidity deposit is needed in the initial stage to secure a supplementary bank guarantees to collateralize the loan. Once the guarantees are delivered the conditions of the zero-depletion account will have been fulfilled, and the liquidity deposit becomes collateral for the loan along with the corporate-pledged assets for the account of the Lender/Guarantor.
PROJECT FUNDING - TERM SHEET
Page 1 of 6
(B) Loan Size:
Minimum USD 20 Million to USD 200+ Million
Product:
Projects will be considered globally including M&A, Real Estate, Natural Resources and all legitimate business purposes
Interest Rate:
5% -15% p.a. Simple Interest (Negotiable)
Term Of Loan:
5 -10 Years (Negotiable)
Liquidity Deposit:
3%-10% of loan amount in a zero-depletion account (Negotiable but minimum amount is USD 2 Million).
Timeline:
45 to 120 days from contract implementation to delivery of the first tranche funding
Funding Fees:
3% - 6% on approved loan amount
Engagement Fees:
USD18,000 (One time payment. 50% refundable upon loan approval)
Collateral:
Refer to (A) above
Guarantees:
Refer to (A) above
For All Programs : Initial Documents: 1.
Letter of Intent from Borrower requesting the exclusive services of Tyesun Capital Pte Ltd and conditionally accepting terms and conditions;
2.
Executive Summary (3-5-pages) providing an overview of the Project/Loan objectives, with the capital requirements in cash flow format, to include a proposed drawdown schedule;
3.
Complete Corporate/Private Profile, with professional advisor/s and banking contact information. (Additional documents may be requested.)
Procedure: 1. Borrower submits request for loan, accompanied by 3-5 pages Executive Summary to include cash flow projections and details of management team. 2. When the Funding Source replies conditionally that funding is available, Borrower submits LOI appointing Tyesun Capital Pte Ltd exclusively, at the same time providing bank and professional advisor details 3. The Funding Source issues Conditional Offer, valid for 10-15 banking days; 4. Borrower provides all information requested in Offer Letter, and acknowledges ability to allocate liquidity deposit. 5. Drawdown schedule agreed with Borrower; 6. Contract issued and signed by both parties; 7. Liquidity deposit allocated by Borrower; 8. First drawdown against contract schedules per the agreed banking days after Borrower allocates liquidity deposit. (This procedure can be negotiable under certain conditions). ALTERNATIVE FINANCING – PRODUCT SHEET Page 2 of 6
Additional Information 1. Qualifying projects can be start-up or existing; 2. Borrowers may be private as well as corporate; 3. Interest and capital repayment holidays can be negotiated by arrangement; 4. Rescheduling of contract terms can be flexible by prior agreement.
Tyesun Capital Pte Ltd reserves the right to make changes to conditions and procedures at its discretion and without obligation to inform any party other than those currently negotiating specific funding transactions.
NOTICE: It is understood that Tyesun Capital Pte Ltd are acting as an alternative funding facilitator of companies that seek funding. We are not licensed as a securities, business, insurance, investment, or real estate; broker, agent, dealer, or advisor, and shall have no authority to enter into any commitments, or to negotiate the terms of any Transaction, or hold to any funds or securities in connection with any transaction, or to perform any act which would require Tyesun Capital Pte Ltd to become licensed as a securities, business, insurance, investment, or real estate; broker, agent, dealer, or advisor. Tyesun Capital Pte Ltd will not engage in any negotiations whatsoever on the behalf of client. Tyesun Capital Pte Ltd will have no responsibility, nor will make recommendations, concerning the terms, conditions or provisions of any agreement between the client and alternative funding provider , or the manner or means of consummating the Transaction. This document is not intended for the purpose of buying, selling, or trading securities, or offering council or advice with respect to such activities. Tyesun Capital Pte Ltd bears no responsibility for decisions taken as a result of the contents of this document. All numbers and figures contained in this document are approximations and have been provided to Tyesun Capital Pte Ltd by sources of capital Tyesun Capital Pte Ltd has interacted with in order to facilitate the Transaction. Tyesun Capital Pte Ltd shall bear no responsibility for any losses incurred as a result of reliance on these terms and figures. Tyesun Capital Pte Ltd shall facilitate direct interactions between the addressees of this document and sources of capital and their representatives. Addressees of this document shall thereafter conduct their own due diligence. Tyesun Capital Pte Ltd bears no responsibility for any losses incurred as a result of introductions made. Origination shall be defined as the time when all legal contracts and any financial instruments as may be agreed between Tyesun Capital Pte Ltd and the addressees of this document, are completed and executed, and Tyesun Capital Pte Ltd facilitates an introduction between sources of capital and addressees of this document. All fees mentioned in this document are exclusive of any fees Tyesun Capital Pte Ltd may have in the transaction. Fees mentioned herein are in addition to Tyesun Capital Pte Ltd fees. Tyesun Capital Pte Ltd does not guarantee that capital sources shall source funds to the addressees of this document as a result of introductions being made between them and addressees of this document. Tyesun Capital Pte Ltd shall bear no responsibility for losses sustained as a result of a capital sources’ decision to desist from such sourcing of funds.
ALTERNATIVE FINANCING – PRODUCT SHEET Page 3 of 6
FAQ 1. Who is Tyesun Capital Pte Ltd (‘Tyesun’)? Tyesun is a private limited company registered in Singapore. The directors and management have wide experience in international financial markets, and through its resources, Tyesun can offer project fund sourcing to approved borrowers on favorable terms, with transparent procedures and fast turnaround.
2. What category of client does Tyesun prioritize? Tyesun works primarily with large corporate entities (these often having the backing of government guarantees), as well as multilateral agencies, NGOs and charitable trusts. As an upgrading of previous program, funding is now available for refinancing and ongoing development of existing projects. Borrowers should ideally be working with competent project management organizations.
3. What sort of numbers are we talking about? It is not viable either for the Borrower or for Tyesun to arrange funding for less than twenty million Euros/ USD. There is no upper limit to the funding available for viable projects.
4. How is Tyesun different from other loan facilitators? By employing innovative financial engineering techniques Tyesun is able to offer low interest and long (normally negotiable) repayment terms.
5. Who is responsible for the Due Diligence on accepted projects? The DD will be commissioned by Tyesun’s Funding Source using major accounting practices and paid by the Client. The guarantee provider also reserves the right to carry out its own due diligence.
6. What procedure has to be followed with the financial guarantee that underwrites the funding? Once exclusively retained, Tyesun requires a liquidity deposit (a percentage of the loan value) to be allocated to a zero-depletion account on which Borrower will be joint bank signatory for the instructions governing account operation. Borrower must evidence capability of providing the liquidity deposit on inprinciple approval of loan application. Charges over assets that secure the loan will be instrumented by the Funding Provider and Borrower’s legal & financial advisors.
7. What financial instrument/s underwrite the loan? The liquidity deposit and the charge over the Borrower’s assets is used to put in place the guarantee that backs the loan. The fee is payable to the guarantee provider on bank-advice of delivery of guarantee, and the charge over Borrower’s assets will be lifted on loan repayment.
ALTERNATIVE FINANCING – PRODUCT SHEET Page 4 of 6
8. How are the loan funds provided? Prior to contract, the Funding Source and Borrower agree a schedule of disbursements for the drawdown of funds that can range from three months to end of the loan term. Drawdown can commence as early as 30 banking days (six calendar weeks) after guarantees and collateralized security is in place and will continue periodically according to the agreed schedules until the entire loan sum has been disbursed to Borrower.
9. Do interest and amortization payments begin immediately? Normally yes, but the standard Funding Source contract can by arrangement allow for an interest and amortization holiday; in such cases the relevant amounts will be additional to the loan sum and amortized according to the Agreement.
10. How can the loan repayment period be so extended? The majority of clients are financing critical infrastructure projects that necessitate long amortization periods and the Funding Source does its best to accommodate such requirements.
11. What happens in the event of default by Lender or Borrower? If the Lender/ Funding Source does not meet its contractual commitments, the Agreement will be cancelled immediately regardless of termination date. Borrower will not be legally obliged to repay any funds received up to that point or pay any outstanding interest charges.
If the Borrower defaults on interest or amortization payments, the Funding Source would be within its legal rights to foreclose on the securitized collateral held. Nevertheless this would be an ultimate option and Borrowers should approach the Funding Source for the purpose of renegotiating payment terms should delays become unavoidable for whatever reason.
12. Through which bank is the funding sourced? Standard Chartered Bank, Hong Kong, or other bank of equal standing.
13. Does the Borrower have to demonstrate ability to provide the fee? After in-principle approval of application Borrower must prove ability to make available the underwriting fee.
14. Can the funding formula described above be used for private investments? Yes. Corporate and private, as well as public-private partnerships.
ALTERNATIVE FINANCING – PRODUCT SHEET Page 5 of 6
15. What is the Client’s financial risk? The Client has no risk, only a win-win funding situation whereby for a nominal liquidity deposit, Borrower receives a funding package that can be applied to the largest scale infrastructure projects, such as power generating plants, airports and harbors.
The liquidity deposit is under the Borrower’s control and the Borrower may give instructions on the bank zero-depletion account where the liquidity deposit is placed. Borrower also has online access to his account with the Funding Source in order to keep updated on the financial aspects of the transaction. The liquidity deposit is paid to the guarantee provider once the collateral has been agreed and activated as the final element to release funds. The Funding Source is at all times able to evidence the funds allocated to individual Borrowers.
The Funding Source also makes a financial commitment by carrying out in-depth due diligence on the Borrower and the Borrower’s project/s, and by agreeing the delivery of the funds with the end-provider as required.
IMPORTANT NOTICE Tyesun and its Funding Providers, do not accept all applications for funding, even those that are compliant with its general policy. Applicants must show that they fully appreciate the financial implications, and that they have independently confirmed via their professional advisors and/or banking entities, that the statements made by Tyesun and/or its Funding Providers with regard to the Borrower’s security and the delivery of the contracted loan payments are correct. Comprehensive due diligence is undertaken on all applicants that reach pre-contract stage and any previous shortcomings or transgressions relating to fiscal or legal matters will result in the automatic disqualification of any applicant.
THIS DOCUMENT SUPERSEDES AND CANCELS ALL AND ANY PREVIOUS DOCUMENTS OF THE SAME TITLE THAT YOU MAY HAVE RECEIVED.
Tyesun Capital Pte Ltd reserves the right to make changes to conditions and procedures at its own discretion and without the obligation to inform any party that may not be already negotiating a specific funding transaction.
All negotiations with Clients and Client details will be maintained in the strictest confidence and no information of any kind relating to such matters will be released to third parties under any circumstances, with the exception of legal orders from recognized judicial authorities.
ALTERNATIVE FINANCING – PRODUCT SHEET Page 6 of 6
