by Francisco Asensio
Wed Jan 14, 2015 9:22 am
Dear Sirs:
We have tried to make some business with this people (AK Hazari and Mr. Henry Thomas) and they insist that we have to show them the money before meetings and more explanations. They were offering us the following (this is emails they sent to us):
The preliminary terms that have been approved for your project are as follows:
Gross Loan: USD 440,000,000.00
Net Loan USD 220,000,000.00
Term: Ten (10) years and one (1) day
Interest: 2.25%, fixed for the term, due on the Gross Loan
Effective Rate: 4.5%, per annum
Payments: Interest only, annually in arrears
Repayment: At term end, guaranteed by the sinking fund deposit
Grace Period: 24 months, initialed upon disbursement of the Net Loan, first Interest Payment due at 36 month anniversary of the Loan (Option)
Deposit Payment: Escrow Agent
Deposit Amount: USD 2,000,000
Type of the offering: Sinking Fund Debt Program
Closing date: Initial closing within 20 days from the crediting of the deposit amount
With respect to the Sinking Fund, I will explain the program below in form of an example:
Assuming a client requires a $220M loan, we would provide the client with a $440M loan. The client would then immediately receive the $220M loan, providing 100% project financing; while the other $220M would be placed with an International Bank (Top 25) for ten (10) years.
During the ten (10) year term - due to compounded Interest - the $220M will grow to $440M and will be used for 100% repayment of the $440M (Gross) loan amount; this is guaranteed by the Deposit Holding Bank in form of a Bank Guarantee or Certificate of Deposit which will stipulate the value at maturity ($440M).
The client is not required to provide us with an Equity position within his/her Company, and we do not require any securities for the Loan Amount as the Sinking Fund Deposit ($220M) provides us with 100% security.
The client is however required to execute a deposit into our Third Party Escrow Account (100% independent), and to cover an Interest on the Gross ($440M) Loan Amount for the term (10 years).
If so needed, a 12 - 24 month Grace Period can be considered.
In order for us to establish the Sinking Fund, we are required to block the Total Loan Amount in favor of the client, and simultaneously cover all administrative, bank & legal fees; hence the requirement of a deposit.
Also, this deposit is additionally to secure unreasonable behavior of the borrower for the case when they apply for a loan and then, at the time when the loan is approved by board (and, what is more important, all documentation are in place, all administrative, bank and legal fees are paid), borrower suddenly refuses to draw the loan.
It is important to note that the Escrow Agent cannot release the Escrow Funds until the loan has been withdrawn. Should we fail to perform (which has never happened), the Escrow Agent would automatically return the deposit.
It is also very important to note that we handle all the details, and use our own funds to finance the projects; therefore, after our Board has approved any Project; the funding is in fact guaranteed
I will attempt to explain the steps of procedure:
NOTE: The Entire Process is Based on "Bank Confirmation" from both sides.
1. Mr. Renato Guariglia needs to provide "Proof of Cash Funds" Availability by getting a Local Bank to Confirm in writing that there is $2M USD available for this project.
2. Based on this Confirmation from Mr. Guariglia's Bank, Mr. Henry will process the loan documents and All parties will sign the Loan Agreement and all required documents.
3. After all Agreements are Signed Mr. Thomas Henry will provide "Bank Confirmation of Loan Funds Availability" to Mr. Guariglia.
4. NO MONEY IS EXCHANGED BETWEEN THE PARTIES UNTIL THIS TIME. Everything is based on Bank Confirmations of Availability of Funds from both sides.
5. Once both the Banks Confirm the "Funds Avaibility" then Mr. Guariglia will tranfer the actual "Cash Funds" to the Excrow Account.
6. At this time, Mr. Guariglia will get the "Loan Funds" and Mr. Henry will get his "Cash Funds".
We have tried to make some business with this people (AK Hazari and Mr. Henry Thomas) and they insist that we have to show them the money before meetings and more explanations. They were offering us the following (this is emails they sent to us):
The preliminary terms that have been approved for your project are as follows:
Gross Loan: USD 440,000,000.00
Net Loan USD 220,000,000.00
Term: Ten (10) years and one (1) day
Interest: 2.25%, fixed for the term, due on the Gross Loan
Effective Rate: 4.5%, per annum
Payments: Interest only, annually in arrears
Repayment: At term end, guaranteed by the sinking fund deposit
Grace Period: 24 months, initialed upon disbursement of the Net Loan, first Interest Payment due at 36 month anniversary of the Loan (Option)
Deposit Payment: Escrow Agent
Deposit Amount: USD 2,000,000
Type of the offering: Sinking Fund Debt Program
Closing date: Initial closing within 20 days from the crediting of the deposit amount
With respect to the Sinking Fund, I will explain the program below in form of an example:
Assuming a client requires a $220M loan, we would provide the client with a $440M loan. The client would then immediately receive the $220M loan, providing 100% project financing; while the other $220M would be placed with an International Bank (Top 25) for ten (10) years.
During the ten (10) year term - due to compounded Interest - the $220M will grow to $440M and will be used for 100% repayment of the $440M (Gross) loan amount; this is guaranteed by the Deposit Holding Bank in form of a Bank Guarantee or Certificate of Deposit which will stipulate the value at maturity ($440M).
The client is not required to provide us with an Equity position within his/her Company, and we do not require any securities for the Loan Amount as the Sinking Fund Deposit ($220M) provides us with 100% security.
The client is however required to execute a deposit into our Third Party Escrow Account (100% independent), and to cover an Interest on the Gross ($440M) Loan Amount for the term (10 years).
If so needed, a 12 - 24 month Grace Period can be considered.
In order for us to establish the Sinking Fund, we are required to block the Total Loan Amount in favor of the client, and simultaneously cover all administrative, bank & legal fees; hence the requirement of a deposit.
Also, this deposit is additionally to secure unreasonable behavior of the borrower for the case when they apply for a loan and then, at the time when the loan is approved by board (and, what is more important, all documentation are in place, all administrative, bank and legal fees are paid), borrower suddenly refuses to draw the loan.
It is important to note that the Escrow Agent cannot release the Escrow Funds until the loan has been withdrawn. Should we fail to perform (which has never happened), the Escrow Agent would automatically return the deposit.
It is also very important to note that we handle all the details, and use our own funds to finance the projects; therefore, after our Board has approved any Project; the funding is in fact guaranteed
I will attempt to explain the steps of procedure:
NOTE: The Entire Process is Based on "Bank Confirmation" from both sides.
1. Mr. Renato Guariglia needs to provide "Proof of Cash Funds" Availability by getting a Local Bank to Confirm in writing that there is $2M USD available for this project.
2. Based on this Confirmation from Mr. Guariglia's Bank, Mr. Henry will process the loan documents and All parties will sign the Loan Agreement and all required documents.
3. After all Agreements are Signed Mr. Thomas Henry will provide "Bank Confirmation of Loan Funds Availability" to Mr. Guariglia.
4. NO MONEY IS EXCHANGED BETWEEN THE PARTIES UNTIL THIS TIME. Everything is based on Bank Confirmations of Availability of Funds from both sides.
5. Once both the Banks Confirm the "Funds Avaibility" then Mr. Guariglia will tranfer the actual "Cash Funds" to the Excrow Account.
6. At this time, Mr. Guariglia will get the "Loan Funds" and Mr. Henry will get his "Cash Funds".