International Multi -Type Financing Program
For Developing Countries and
Emerging Markets
Worldwide

 Financing Available from $5 million to $350 million

We at Frias Financial realize that financial institutions have all but given up funding of medium to large projects in developing countries.

We can arrange financing of international projects thru one of our new lending programs which is designed to remedy the weakness in the emerging market sector. There are Billions available from the public and private sector to secure funding in these international transactions.   

This program was implemented to fund through direct loans and loan guaranties to eligible investment projects in developing countries. We can help arrange financing in countries where conventional financial situations often are reluctant or unable to lend on such a basis.

This international program supports, insures and finances investment projects with substantial U.S. participation that are financially sound. Promise significant benefits to the social and economic development of the host country, and fosters private initiative and competition.

INTERNATIONAL FINANCING PROGRAM CRITERIA
 

•  LOCATIONS: South America, Caribbean, Eastern Europe, Asia, Africa and any Post Conflict Countries.  

• LOAN AMOUNTS: Typically $5 MILLION  to  $350 MILLION

• BORROWER: A U. S. or foreign company owned at least 25% by the U.S. Sponsor  

• U.S. SPONSOR: a US citizen or U.S. Corporation at least 51% owned by US citizens.

• TERM: Typically 2 to 5 years, depending on the size of the project.

• PROPERTY TYPES: Affordable Housing ($10,000 to $50,000 per unit), Hotels (non tourist destination), Telecommunications, Electric, Green Projects, Post Conflict Hotels and Countries, Eco Tourism, Drinking Water, Sports Field, Hospitals, Schools, Sewage Treatment and Alternative Energy Projects for Oil & Gas.

•  LOAN TYPES: Fixed rate, non-revolving, this means that amounts advanced under the program loan, once repaid, cannot be re-borrowed, in order to minimize interest cost, the loan amount is based upon the cost to build the first group of houses and related infrastructure. The number of houses to be financed will be based upon the financial model for the entire project, but should be sufficient to allow the borrower to construct subsequent phases of the project using the proceeds of sales from the first group of houses.

• GRACE PERIOD: 12 to 24 months, on principal payments only.

• INTEREST RATE: Varies, between 3.00 and 5.00 percent over 2-5 year U.S Treasury Rate. Interest may not be capitalized.

• REPAYMENT SCHEDULE: Principal payments are made at loan takeout or in equal quarterly installments after expiration of the grace period.

• LOAN TO COST RATIO: Typically 60%, not to exceed 65%, calculated on the project costs associated with the first phase of the project.

•  COLLATERAL:

• COMPLETION & PERFORMANCE GUARANTIES: Performance bonds in an amount acceptable to the lender will be required from all major contractors and subs. The provider of the bonds must be acceptable to the lender.

• APPLICATION & PROCESSING FEE: A non refundable fee of $8,000 per loan application will be required, after review and due diligence of project.

• NUMBER AND AMOUNT OF DISBURSEMENTS: Not less than four (4) in a minimum amount to be dertermined, to be advanced on a percentage of completion basis, no more often than quarterly.

• OTHER ACCEPTABLE SOURCES OF FUNDS: Land contribution by government or private entity (at appraised value acceptable to Lender), equipment contributions, other in-kind services proveded (subject to validation by accountant an approval of Lender), and deposits/down payments from buyers (subject to local law requirements and dicounted for potential cancelled sales).

• COMMITMENT FEE: Approximately .5% on the outstanding, undisbursed commitment amount.

• FACILITY FEE: Approximately 1% of the loan amount, or payable at execution of the Commitment Letter or the Loan Agreement.

• INSURANCE: Customary builders' all risk insurance, property damage, theft and liability coverage shall be in place, and lender shall be an additional insured or loss payee.

• FINANCIAL REPORTING: Quarterly unaudited financial statements (income statements, balance sheet and cash flow statement) and annual reviewed or audited statements for Borrower. During construction, Borrower will also provide quarterly progress reports.

• FINANCIAL RATIOS: Loan-to-cost radio (disbursements as a percentage of costs incurred) shall not exceed 65% at any time during construction. Other ratios are required on a project basis.

• OTHER DEBT/LIENS: Any short-term lines of credit or Sponsor loans taken by the Borrower to cover interim expenses shall be unsecured and/or subordinated to Lender loan.

• FURTHER INDEBTEDNESS RESTRICTIONS: No further indebtness permitted, except for short-term trade credit in limited amounts to be determined.

• PROFIT DISTRIBUTIONS: Not permitted until the Lender loan is repaid.

• RESTRICTED PAYMENTS:

• CONDITION PRECEDENTS TO FIRST DISBURSEMENT:
  1.  Copies of major executed construction contracts and subcontracts.
  2. Copies of all permits.