6 New Loan Facility Variations


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A brochure from the Golden Award Winner for Best Financial Services 2ndHomes Financial Services (for its best alternative finance offers) with 6 new Loan Facilities options that we currently are able to offer for a wide range of global project finance.

Published in: Economy & Finance, Business
  • We are direct provider for BG/SBLC specifically for lease, at leasing price of (3 % +0. 5% + X% ) of face value, Issuance by HSBC Bank London , Barclays Bank London , Deutsche Bank, & AAA Rated Banks
    Our BG/SBLC Financing can help you get your project funded, financing by providing you with yearly renewable leased bank instruments. We work directly with issuing bank lease providers, this Instrument can be monetized on your behalf for 100% funding: For further details contact us
    with the below information.

    Mr. Baliga D. Vasudeva

    Intermediaries/Consultants/Brokers are welcome to bring their clients and are 100% protected. In complete confidence, we will work together for the benefits of all parties involved.
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6 New Loan Facility Variations

  1. 1. www.2ndhomesfinance.com6 NEW FUNDING OPTIONS SEPT. 20111. EQUITY FUND 2. JOINT VENTURE FUND 3. LOAN FUND 4. CONVERTIBLE SOFT LOAN ONVERTIBLE5. FUNDING WITH BG 6. GLOBAL FUNDING OFFER1. Facility ECF1 - Equity Capital FundProject Type: It is designed for construction projects. esignedSecurity: First charge over the Project plus an equity share (see below).Cash Deposit20% of the loan sum must be deposited with the Lender for the terms of the loan, in the Escrowaccount of an Austrian Lawyer Office or deposited in the bank of the Lender against a bankguarantee or a Standby Letter of Credit for the term of the loan, repayable upon repayment of the bleloan. In case of guarantee / SLC it has to be returned to the Lender after the first loan pay out. returnedCurrency: EurosTerm: It can be up to 15 years.Rate: Zero interest as the Lender will hold equity in the Applicants project.Loan to Value Ratio: Up to 100% of cost/valueEquity Requirements:Between 29% to 49% and lower in the event the Applicant has existing equity in their Project.Closing Time:It is counted from the date of the deposit and currently 30 to 45 days from completion of all due rom currentlydiligence documentation.2. Program JVF1 - Joint Venture FundProject Type: For all forms of development including infrastructure projects llSecurity: First charge over the Project plus an equity positionLoan to Value Ratio85% of cost - Applicant must have a minimum of 20% (Deposit) in the form of cash that should bedeposited in the Escrow account of an Austrian Lawyer Office or deposited in the bank of theLender against a bank guarantee or a Standby Letter of Credit. In case of guarantee / SLC it has to .be returned to the Lender after the first loan pay out.Currency: EurosTerm: NegotiableInterest Rate: ZeroEquity Requirement: Lender will require holding an equity position in the Project of up to 50%.Closing Time:It is counted from the date of the deposit and currently 30 to 45 days from completion of all due romdiligence documentation. www.2ndhomesfinance.com
  2. 2. www.2ndhomesfinance.com3. Program LF1 - Loan FundProject Type: It is suitable for completed and to be built projects. eSecurity: First charge over the Project.Cash Deposit20% of the loan sum must be deposited in the Escrow account of an Austrian Lawyer Office ordeposited in the bank of the Lender against a bank guarantee or a Standby Letter of Credit for thefirst year of the loan at which point it will be deducted from the principal leaving 85% owing.Currency: EurosTerm: It can be up to 15 years.Rate: Currently 4% to 4.5% fixed for the term.Loan to Value Ratio: Up to 100% of costEquity RequirementLender will take a 51% equity position during the term of the loan which is returned to the Borrowerupon loan repayment. Lender does not require sharing project income. Therefore the Borrower haseffectively raised 100% of the project cost without having to share equity.Closing TimeIt will be counted from the date of the deposit and currently 30 to 45 days from completion of all rom depositdue diligence documentation.INTEREST RATE VARIATIONS:4% to 4.5%: in case of 15% Own Capital3% to 3.5%: in case of 20% Own Capital2% to 2.5%: in case of 25% Own CapitalLOAN AMOUNT: Minimum 25 million Euros www.2ndhomesfinance.com
  3. 3. www.2ndhomesfinance.com4. CONVERTIBLE SOFT LOAN - project financingIntention and intended clientsProjects can be financed through a convertible soft loan at almost zero interest provided thatmonetary collateral appraised equal to project funding needs, is available for a period of oneyear. This structure is suitable for governmental project organizations, property developers, mediumto large corporations wishing to expand.Type of projectsProperty development for (social)residential, commercial and recreational purposes.Infrastructural projects, industrial projects.Type of required collateralCash deposit, banking financial instruments including Bank Guarantees, MTN’s, Certificate ofDeposit, Governmental (sovereign) guarantees, other banking custodian guarantees.Face Value of collateral should be equal or higher than € 50 Million.Utilization of collateralCollateral issued in the name of beneficial/project initiator.Collateral will be blocked for a period of one year only. The provided collateral is at no risk.Disbursement of project financeRelease of first funds occurs according to agreed project fund cash flow schedule and within 1month after commencement of contract.Finance structureThrough convertible subordinated soft loan agreement with very low to zero interest in combinationwith equity participation in project joint venture with agreed exit after project value increase.Procedure1. Mutual agreements of intention;2. Project(s) overview with financial forecast required;3. Overview and validity check of collateral to utilize/proof of funds;4. Agreement on project JV structure and disbursement of funds.TimelinesProcedure estimated on 3-6 weeks. First funds available within 4 weeks after agreement.Example (in euro’s)Project Total expenditure cash out 50 millionPeriod of expenditure 12 monthsFace Value of Guarantee provided collateral 75 Million per 12 months (1) by Project initiatorInvestor finances through project JV per year 50-75 Million per 12 months (2) (3)(1) Collateral remains blocked for period of 12 months(2) Finance through subordinated convertible loan(3) Percentage of funding depending on credit rating of collateral (issuer)Total financed through 1 year finance 50 - 75 MillionTotal guaranty required for period 75 MillionPeriod duration 12 monthsSubordinated convertible loan provided until project ending with profit share through project exit orsooner exit as agreed. When agreed loan does not need to be paid back but provider will begranted an exit.Based on above calculations different scenarios are possible e.g. to increase collateral amount tofund other projects etc.Lender procedures are not negotiable. We appreciate enquiries in strict conformity with thesepossibilities and procedures, and handle in strict confidentiality. Don’t ask for a conference call withthe lender prior to any documents have been completed and exchanged and results from fundshave been expressed. www.2ndhomesfinance.com
  4. 4. www.2ndhomesfinance.com5. FUNDING WITH BANK INSTRUMENTTo lease an instrument with and without project funding included. Please follow the followinginstructions.We need: • CIS • Passport • Project presentation [i.e. Business Plan and/or Executive Summary] • Proof of Funds for 2M or more in the form of a unsanitized Tear Sheet or Bank Statement.1. We will review project and approve the project as a whole and the associate payout schedule(proforma)2. Once we approve we will send out a contract. Upon execution of the contract we will be happyto show proof of capability and evidence of historical transactions.3. Client will then wire funds that will be utilized (not escrowed) for the banking fees associated with bankicutting the asset which could be a BG, SBLC or Cash Account. A table top closing option iswelcomed. Client can close in our providers office in Orlando, FL.4. Within 5 days or less we will show evidence of the asset and then begin to make the instrumentperform to fund the project at 100% Loan to Cost.We will consider deferring the balance but you need to present a strong position as to how thebalance is going to be paid in the agreed timeframe. If the client fails to send a wir by FED cutoff wire2PM EST on the due date. We will immediately collapse on the asset and your bank fees of 2M willnot be refunded as indicated in the contract.6. GLOBAL PROJECT FUNDINGIf someone wants to fund a project. We can utilize our assets for monetization to funds requests upto 100% of the costs requested. Using an asset of 100M can successfully fund a project up to 1.5Billion.We use the same procedures as leasing an instrument but the balance owed on the lease fee ofwill be paid out on the 1st tranche that has been preapproved for the funding.Total fee is 12%. [Not including a broker referral fee at 1%] 2 Million deposit which is utilized from theclient and the balance paid by the monetization.On 1st tranche we will pay ourselves the difference of the leasing fee of 10% and then wire out 1st cheround of funding.Site visits will probably happen regularly between tranches. We may want a JV or some sort ofparticipation of the project which will be determined after underwriting and reviewing a completefile submission.If you dont have the 2M to invest there is no other option available as we securitized our loans. Minimum request accepted is 10M with no max request inimum Please Read Carefully: THERE are no guarantees made or implied to funding dates. Only upon proper application, approval and issuance of contract from provider/escrow attorney can an approximate funding date be determined. Choices and options enough to let 2ndHomes Financial Services guide you through your best financial solutions! Feel free to con contact us if you need any further information. nformation. 2ndHomes Int.: Award Winner for Best Financial Services 2010! www.2ndhomesfinance.com