In order to accommodate the constant increase in the demand and volume of funds for the realization of numerous proposals with a high degree of confidentiality, a rigorous selection is imperative.

Commercially viable business opportunities, solid proposals and strong potential clients are identified and recognized on a selective basis in accordance with the country and the respective political risk. They need to follow acceptable basic funding criteria and necessary requirements for a loan (attractive rates, terms and conditions to be fulfilled).

Each request is carefully assessed (diagnostic/evaluation/credit analysis), and goes through a comprehensive assessment or verification process according to prudent financing practices.

Procedure

As a first step, and for a preliminary screening, a summary of the project intended to be funded would have to be provided, containing the following basic information:

PROJECT SUMMARY

Project Owner Applicant / Borrower Entity

Full legal/business name with address, phone/fax numbers, e-mail, etc.
Brief background/main activities
Authorized/paid up capital
Shareholdings (names of shareholders with percentage of shares
Board of Directors (names and position)

Loan Requested

Amount and Breakdown of the use of the loan proceeds
Loan Period requested (number of years including the construction/ development period)

Project

Complete name
Location (exact address, land area/zoning, etc.)
Description (concept, profit centers, etc.)
Type (project finance, refinancing or acquisition finance)

Equity / Financial Responsibility

Hard Equity presently available (assets: land/properties, cash, etc.)
Offered Guarantees (corporate, personal, others)

Total Project Cost

Cost of land
Development cost (construction/infrastructure, furniture, fixture and equipment, fees and expenses, etc.)
Working capital (if applicable)

NOTE:
In case of a request for refinancing, please indicate the breakdown of existing debt/loans outstanding, and respective names of Banks/Financial Institutions.

Studies / Investigations already made (only author / names and dates)

Feasibility Studies (market survey, marketing/operation plans, financial analysis/projections/debt service, etc.)
Appraisal Report (land/property valuation, figures, etc.)

NOTE:
Please, indicate all amounts/figures in local currency and equivalent in US Dollars.

Upon submission of the above requested information (Please see respective Nine Point Summary form below, to be filled in/forward back to us), EVALUATION FUNDING S.L.U. would be in the position to initially check the parameters of your project, contact potential loan arrangers/lenders interested specifically in this type of project, and get back to you in about 2 to 3 working days with the results.

After our acceptance of the Nine Point Summary, a Letter of Intent will be issued by us, containing the basic conditions, timing, and procedure, and forwarded to the client, together with the “List of Documentation”, and the “Content of a typical Feasibility/Viability Study”, as guideline.

The applicant will know exactly what kind of information/documents should be delivered to us for the verification/due diligence process. EVALUATION FUNDING S.L.U. will grant an option time of one to two weeks for the applicant to make his decision to accept, by signing/executing the document. As soon as the applicant accepts the Letter of Intent, the verification/due diligence process will be booked, which means, that the immediate transfer by the applicant of the respective verification/due diligence cost (stipulated in the LOI) would have to be arranged (necessary Banking Instructions will be provided).

FORM

TIMING

Upon receipt of all the required documentation in accordance with the List attached to the Letter of Intent, the verification/due diligence process begins, which will take about 20 banking days (including – if necessary – a site inspection of the project). All comments, findings, clarifications, etc., will be presented in a written form, called the Verification Report. Provided that the documentation submitted by the applicant complies with the specific requisites, and is supported by the proper evidence (as per the 9 Point Summary), a Firm Commitment in writing will then be issued. The final draft of the Loan Agreement will be prepared, and sent to the applicant, and his legal advisors.

The honorarium for the lawyers to set up the Final Agreement – if applicable – will be paid at this stage only. The closing of the Syndication and the appointment of the Facility/Paying Agent will be conducted simultaneously.

Finally, the Loan Agreement will be executed by the parties, and the loan will be concluded (closing and disbursements).

Depending on the type of financing requested, from 3 to 5 months are necessary until the Firm Commitment, counted from the date of acceptance of the Letter of Intent by the applicant, and subject to the receipt on time of the complete required documentation.