International Asian Fund [IAF] – General Funding Terms
All project Investor non-dilutive debt facilities are always on the most competitive and beneficial terms, as there is fierce competition among Investors, and it is in the Investors best interests to ensure the project will be able to easily repay the investment loan, to avoid defaults which are damaging to the Investor’s portfolio asset base.
In general we can summarize the standard, basic loan terms usually resulting from the IAF Funding Platform for commercial project loans, as follows:
100% Net Project Capital
The loans always give 100% of capital needed to complete the project, simply by providing the right amount of supporting collateral, insurance.
3 Year Loan Period (Extendable)
The loans are normally for 3 years, with an option to increase the amortization period.
Interest Only Payment
The resulting loan structures (including outside collateral assets and Insurance) typically have an “equivalent interest rate” (on the “net working capital” actually received) of only 4.0% paid quarterly.
There are never any penalties for early repayment. Lenders of major project financing packages never discourage the borrower from early payments when it is convenient for the project.
Because of 100% or more collateral coverage from third parties, the loan is fully Non-Recourse, with no corporate or personal responsibility whatsoever.
Cash Equity Contribution
2% Deposit as an Underwriting/Third-Party Collateral Fee (Bank Fees, Due Diligence Fee, and Borrowing Assets Fee (Borrower must use the Investor assets to back up project for Financing.), Insurance, Legal Fee.
Closing Costs (Origination Fee)
Total closing costs and fees for all aspects of the funding package are normally 2.0% of net working capital received by the client.