GUARANTEED INVESTMENT PROGRAM ADMINISTRATIVE CONSULTANT COSTS

 

1. CONSULTANT FEES: SanPete Financial Group will receive a fee scale consulting fee, based on the project’s size and scope of work, for all consulting, administration and sourcing of the deal to a potential Guaranteed Investment Funder.  See Guaranteed Investment Program Consultant Agreement.
    

2. PROJECT FINANCING Costs: The Guaranteed Investment Funder will receive a fixed consulting fee, for financing the project at these favorable terms, based on the project’s size and our scope of work.
    

PROJECT PARAMETERS

 

• Debt-to-equity ratio:  Up to 100% of the project budget can be financed. No new cash (“unexpended funds”) need necessarily be invested by the developers or sponsors when using a capital guarantee sent via SWIFT. A loan guarantee such as a Government issues Sovereign Guarantee helps to expedite project financing.  

• 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. See complete list of requirements.  
   

• Size range: Minimum: $100 million

  Maximum per project or portfolio:  $4 billion.  Note that larger portfolios typically take longer to close.
   

• Loan term, type and tenor: 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 length of the loan. Repay in full at any time before maturity date without penalty.

  • Asset class is most similar to mezzanine or subordinated debt with an equity kicker. There is no senior debt required or used — thus no lien against operating assets.

  • Minority carried interest (equity stake; see below) requested for the life of the project with an adequate capital guarantee.

• Equity interest: A minority equity stake in the SPV based the rating of the instrument and bank used, amount of preparation required from our side, and the role you wish us to play (such as whether or not we’re involved in asset construction or O&M), years of coverage for a Bank Guarantee (see below), and whether you require 100% financing and/or early stage development financing. This is negotiated on a case-by-case basis thus difficult to predict. 

  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, but that is just a guess.  This is a topic for discussion upon completion of due diligence.
   

• 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) and/or Sovereign Guarantee hard copy sent via courier.
   

• 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.