Program
Impact Capital and Development Financing: Indicative Terms for Guaranteed Investments
The following information does not constitute an offer to buy or sell securities. The following are typical project finance terms under our Guaranteed Investment Program:
- Debt-to-equity ratio: 100% of the project budget can be financed.
- Type: Mezzanine Debt and Equity (There is no senior debt used — thus no lien against operating assets, Non-Recourse)
- Stage of Project: Does not need to be shovel-ready (if some additional development steps are needed before construction, that may be fine). All the various uses of funds must be properly disclosed, verified, and fall within standard guidelines.
- Size range: Minimum: $25 million ($50 million+ preferred) Maximum per project or portfolio: $4 billion. Note that larger portfolios typically take longer to close.
- BG/SBLC Coverage: 70-80%( maybe 60% in some cases)
- Loan term, type, and tenor: Non-Recourse, 3% APR fixed if the bank issuing the capital guarantee is rated as one of the top 200 banks in the world. Lower-tier banks may result in a slightly higher APR.
- Loan length (tenor) can be 4-20 years or more. Note: APR is fixed, and does not vary with the length of the loan. Repay in full at any time before the maturity date without penalty.
- Draw schedule: Funding is provided in stages, per a published and agreed-upon monthly draw schedule, to complete any remaining development, then procurement, asset construction, and commissioning.
- Pre-Payment Penalty: None
- Cost: Fixed consulting/success fee ( 1-7% paid at closing on 1st draw )
- *Equity interest: A minority equity stake in the SPV based on the rating of the instrument and bank used, and whether you require 100% financing and/or early-stage development financing.
- Timing to receive funds: Closing within 30 days and first funds arrive within 30-45 days after closing. Closing follows quickly after receipt of the Bank Guarantee hard copy (first sent via SWIFT MT-760 with bank RWA letter).
*Minority carried interest requested for the life of the project with an adequate capital guarantee. We strive to leave as much of the “retained earnings” as possible for the company to grow and succeed. The investment is effectively a “hybrid” of debt and equity and what’s typical is 15-40% equity with full BG/SBLC coverage during construction.
