Home

EL-ECOJAY DEVELOPMENTS GROUP PROJECTS LTD HOLDINGS INVESTMENT PARTNERS. 

DEBT /EQUITY FINANCING IN SPV

1. In case Project Owner does not bring any guarantee, capital to the table:

• With this scenario, investor shall seek 70% equity stake in the SPV

• 70% only during the period of loan repayment term and then at the maturity of the loan payment investor to hold only 30%.

• Project owner to keep 30% during the repayment period of the loan, then become majority with 70% after the maturity of the loan.

• Term of loan to the SPV: 3% interest rate to the SPV, 4 Years Grace Period, up to 25 Years, if needed.

• With this scenario, investor shall seek 30% equity stake in the SPV, only

during the loan repayment term and Zero equity after the maturity of the loan.

• Project Owner to hold 70% during the loan repayment term and then 100% equity stake after the maturity of the loan.

• Term of loan to the SPV: 3% interest rate to the SPV, 4 Years Grace

Period, up to 25 Years, if needed.

2. In case Project Owner brings at least 35% SBLC/BG to the table:

3. Concession granted to investor by the Government:

4. Investor may hold 100% equity stake in the SPV

5. Term of loan to the SPV: 1.5% - 2.5% interest rate, 4 Years Grace Period, up to 25 Years on the loan term, if needed

6. Investor to pay all taxes, relevance, concession fee etc to the Government per executed concession agreement.

 

SPV FUNDING PROCEDURE

STEP #1:

1. Signing of MoU

2. Registration of SPV in the Country by Project Owner

 

STEP #2:

1. Proof of SPV creation and bank account by project owner

 

2. Investor to appoint on Investor side a Director to serve in SPV (investor`s Board Resolution to be granted), in many cases consultant that brought the project is appointed temporary at this position. Director to speed up the process and avoid delay.

3. Signing of Shareholders Agreement between Project Owner company (Concessionaire) and Investor`s in USA

4. Signing of Loan Agreement with SPV`s Directors and investor (Loan is extended to the SPV, not to the Project Owner)

 

STEP #3

1. Project Package is now turned over to investor TECHNICAL TEAM

2. Investor TECHNICAL TEAM to schedule: TECHNICAL AND

FINANCIAL OPERATION AUDIT with Project Owner Team, so Investors experts can be deployed on the ground to Audit the project.

This audit process funded by Investor can take up to 4 Months to complete.

 

STEP# 4

1. Funding starts immediately after the results of the Audit by Investor Technical Team

2. Investor Technical Team to work on the EPC contract with experts to start the project implementation phase.

3. Project owner will be granted 1% oversight management fee at each payment schedule