project finance
Project Finance
Whether you are looking to finance a new project or expanding an existing one then this finance will boost your business since it is simple, fast and reasonably priced.
This finance is provided by a large Capital Investment Group in the United Kingdom through creating a joint venture with the project owner (Applicant).
Summary:
– Product: Project Finance through partnership (Compliant with Sharia’a)
– Finance Amount: Starts from USD 30MN, upto USD 300MN
– Source of Finance: Funding Partner’s account from highly-rated European banks
– Finance Disbursal: progressive payments, based on project progress
– Repayment after project delivery: Monthly, quarterly or half-yearly
– Fees: Refer to fee schedule
– Processing Time: 30 – 40 working days
– Repayment: quarterly or half-yearly
– Collateral:
– Partnership and Finance contract
– Joint project ownership
Benefits:
1- Simple, flexible, reasonably priced and Sharia’a compliant finance
2- No upfront payment
3- High finance amounts and long repayment periods
4- Finance amount is fully KYC’ed and is transferred from the Funding Partner’s bank account in Europe
5- Due diligence is carried out by KPMG, one of the Big Four audit firms
6- Available in most of the countries (with medium to low risk rating)
Documents Required:
1- Full set of company’s document (company reg., partners list, passport copies, Memorandum of Articles, Board Resolution, etc.)
2- Land title deed / long lease contract
3- Company bank statement for the latest 6 months showing the account and IBAN number
4- Proper Project / Business Study
5- Audited financials for the past two years and in-house financials for current year
Procedures:
1- The required documents are submitted to Strategia Finance (Financial Consultant)
2- Full due diligence is done by through KPMG
3- On approval, an offer is sent to the client with all details for client’s signoff
4- Funding Partner’s team visits the project site
5- On successful site visit, the Finance Agreement is sent to the Applicant for review and signoff
6- NEW company is setup jointly between the Applicant and Funding Partner in the project country, this company will own the project
7- NEW company is setup jointly between the Applicant and Funding Partner in UK, fund will be transferred to this company account
8- The finance amount is transferred in trenches to the joint company account in UK, based on the approved payment schedule
9- Land title deed / long lease contract
10- The finance amount is then transferred to the joint company account in the project country to fund the project with joint signature
Fees Schedule:
1- Advance payment / upfront: ZERO
2- Cost of finance (profit rate): 2% flat per annum, applied after the project delivery
3- Processing fee: 5% of finance amount deducted from the first tranche – the same can be added to the project cost if needed
4- Financial consultant fee: 2% of total finance amount, paid on disbursing the finance
5- Project management fees: 3% of finance amount, paid on prorate from each finance payment
6- Engineering consultant fee: 3% of finance amount, paid on prorate from each finance payment
Important Notes:
1- The Funding Partner is a well established investment company based in the UK with a successful track records in project finance
2- Proper Project Feasibility Study is a prerequisite to accept the project documents
3- The documents should be clean and clear, for due diligence by KPMG, original should be presented for viewing
4- The acceptance of documents would mean that the project will be mostly accepted for finance, if the due diligence is successful
5- The Project Management and Engineering Consultancies are appointed by the Funding Partner and cannot be replaced by others
6- The finance will be disbursed in trenches to fund the project only, not to fund other activities.
Application Form:
Fill out the below form and get your dream project qualified for the finance: