- SFO is delighted to announce our Make Countries Future Ready Program™, and we look forward to supporting all countries worldwide in catering to external debt, fiscal deficit, turning around revenue deficit and implementing essential infrastructure projects of national importance.
- This financing program, provides unique and wide-ranging financial services and solutions to governments around the world. SFO has devised a financing program for government that allows BOT and BOO projects to be implemented without burdening the respective country with sovereign debt.
- Government spending now represents about 30 percent of the $ 105 trillion total global economy. SFO works with national and regional governments, city municipalities, quasi-government agencies such as development funds and trade associations as well as government-owned companies to realize their economic and social goals.
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The public sector's influence comes directly, through government entities, state-owned enterprises and institutional funding, as well as indirectly, through regulation and oversight. The sector is facing major challenges, such as rising costs, growing deficits, shifting centers of economic activity, a burgeoning war for talent and increasingly demanding customers. Recently, the use of stimulus funds and regulatory reform has further blurred the lines between public and private entities. SFO works with bold, ambitious leaders who are not satisfied with the status quo and eager for change to address the key strategic tools that improve performance and help public-sector entities do the work they do better. Make Countries Future Ready Program™ encompasses the following areas, to name a few:
- Funding External Debt, Fiscal Deficit, Investments towards meeting the SDG 2030 targets, Essential Infrastructure Investments to Double GDP,
- Economic Sustainable Development and Sector Strategies.
- Privatisation.
- Change management.
- Cost and Service-Quality Improvements.
- Organisational Design.
- IT infrastructure.
SFO FUNDING OF COUNTRIES AGAINST SOVEREIGN BONDS BROAD TERMS
- Collateral - Sovereign Bond / Sovereign Guarantee.
- Central Security Depository ( CSD ) Listing - Mandatory to be listed on Euroclear or DTCC.
- LTV - Linked to country rating.
- Loan Amount - Minimum $100 Mn. Maximum shall be commensurate to the collateral provided and LTV arrived.
- Rate Of Interest - 2 % per annum on reducing principal.
- Disbursement - 20% of LTV per month.
- Disbursement Period - 5 months.
- First Disbursal - One month from the day of signing definitive agreements and delivery of bond on CSD.
- Tenure - 20 years.
- Moratorium - 2 years.
- Repayment - Last 5 Years of the tenure.
SFO - WEF Demographic Data
- SFO helps countries with financial and other support. Our surveillance program provides continuous monitoring of member countries’ economic and financial policies. Discussions with country authorities focus on the impact of their economic policies on stability and growth and the desirable policy measures.
- Capacity building typically focuses on how countries’ can boost domestic revenues, manage public finances and monetary policy, regulate their financial system, and develop statistical systems. Capacity building helps countries to design and implement sound policies and to advance toward the United Nations’ Sustainable Development Goals.
- This is a program of financial injection for BOT and BOO projects through Government which does not involve burdening the country with Sovereign Debt for Rail, Energy Plants, Oil Refineries, Marine Ships, Hotels, Sea Ports, Agriculture, etc. We cannot undertake construction projects that have no technical content like roads, housing, etc.
- Under this program SFO and its governmental portfolios sign agreements with the respective Government to support the country’s BOT and BOO National Projects, by providing 80% of the financing needs of those National Projects without burdening the Ministry of Finance with sovereign loans.
- In return, the Government announces the projects on a bidding basis by inviting all local companies and international consortia, to bid for the remaining project activities including 20% funding, construction, and project operations, thereby ensuring fairness, equality, and transparency according to the rules, regulations, and laws applicable in the respective country.
- Under the terms of the program, SFO will provide turnkey solutions for infrastructure project construction and funding in the country through all the Country Banks.
- There are no limits to SFO’s ambition. The entire team aspires for the company to be the largest lender in the world during the coming few years. We do not have any direct competitors, because our unique and flexible approach with our customers ensures we always achieve their goals.
- A positive factor in attracting foreign investment to any country is the interest and confidence of foreign investors in the stability of the country’s economy and the prospects for its development.
- In order to create the most favourable investment climate and stimulate the attraction of foreign investment for foreign investors making direct investments, every country has to legally establish a wide system of benefits, preferences and guarantees to protect the rights and interests of foreign investors.
- SFO provides project related services including Management, Consultancy and Funding, particularly for large infrastructure and commercial projects.
- This announcement of SFO - Make Countries Future Ready Program™ provides for cooperation in financing large projects, as well as projects in the field of small to medium business and private entrepreneurship.
- Our partner banks provide funding for small to medium sized businesses and to stimulate the country’s economy.
- SFO - Make Countries Future Ready Program™ acts as a catalyst for providing governments with a specifically tailored flexible lending system, during a time when market conditions have been particularly challenging.
- SFO offers a wealth of experience in Banking and Financial transactions and has a range of specialized advisory services for private clients, medium and large corporations as well as governments.
- SFO looks for strategic alliances with several organizations and companies which give access to international markets in Europe, Asia, Africa, Middle East, and GCC regions. This shall give SFO a substantial foundation of clients to build on, in addition to access to the markets that are most in need of the products and services offered by SFO - Make Countries Future Ready Program ™.
- This program will be devoted exclusively to governments and rated banks, and the private sector will only be allowed to work through them.
Aim
- The aim of SFO is to facilitate the commencement and completion of Commercial and Infrastructure projects, stimulate economy, create employment and combat poverty.
Types of Project
- SFO services are suitable for all types of Infrastructure Projects in either Greenfield (Pre Operations Stage) or Brownfield (Operations Stage) including but not limited to Sea Ports, Airports, Railway, Bridges, Roads and Highways, Water and Sanitation Utilities, Energy, Communications, Hospitals, Schools and Social Infrastructure etc. This includes other projects or activities that impact positively on the relevant country’s basic infrastructure including the manufacturing of components used in infrastructure (such as cement and steel) and infrastructure associated with mining and agribusiness.
Size of Project
- Minimum 1 Bn. Maximum shall be commensurate to the collateral provided and LTV arrived.
Loan to Value
- Linked to country rating.
- Up to 80 - 100% of project financing required.
Term
- Upto 20 years with 2 years moratorium and last 5 years of tenure as repayment time.
- Up to 15 years for the design, build and finance component and up to 30 years for the ongoing operation component.
Operation
- Projects can be either BOOT (Build, Own, Operate, Transfer) BOO (Build Own Operate), BOT (Build Own Transfer), BTO (Build, Transfer, Own), BT (Build Transfer), BLT (Build, Lease, Transfer), BRT (Build, Rent, Transfer) or PPP (Public Private Partnership).
Locations
- All countries can be considered, although countries currently engaged in war, politically unstable environments, or sanctioned countries will not be suitable. All projects must adhere to local and international environmental, health, safety and social standards as required.
Suitable for
- Privately held projects, Public & Private Infrastructure Operators, National & Local Governments, NGOs and Financial Institutions.
Funding Collateral
- Commercial Bank Instruments - Bank Guarantees, Bonds, Medium Term Notes, or other Bank Debt Instruments issued by banks rated ‘BB+’ or better, but this can be reviewed on a case-by-case basis.
- Sovereign Guarantee - SFO is able to facilitate funding for Government and Infrastructure Projects against a Sovereign Guarantee subject to the Sovereign Guarantee being ratified by the relevant authorities and departments, namely the Central Bank and Ministry of Finance in the respective countries. In some cases the Sovereign Guarantee may need to be confirmed by a Commercial Bank.
- Resource Guarantee - The option is available to fund projects against a Resource Guarantee such as an Oil Guarantee or any other significant and valuable minerals or resources that the country has may also be considered.
- Promissory Notes - Corporate Promissory Notes endorsed by a commercial bank can be useful if the project has bankable assets that can be used for leverage financing.
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