SFO Credit To Companies
SFO provides credit to Private & Public Sector Companies. This Competitive Equity / Debt based Capital Infusion is available across Large Cap / Mid Cap / Small Cap ( Fund Based / Non Fund Based ). Our investment methodology is elaborated below.
A - OVERVIEW
- We at SFO believe that competitive capital infusing into Country / Company Projects shall allow us to help Governments/ Businesses build facilities that matter in the communities that they operate in thereby creating economic value that uplifts the quality of life of the populace.
- Our debt / equity mechanism is almost similar except that we do not take the principal back in case of equity investment till we execute the planned exit.
- Also there shall always be a third party cash collateral in case of both as well. A concise version is reflected below.
- The overwhelming response to #OurCompetitiveLoans has encouraged us to lend across Large Cap, Mid Cap and Small Cap Investments with the smallest loan being 50 Mn and a maximum of 5 Bn USD. Anything above shall be on a case to case basis.
- For loan amounts between 5 Mn USD to 50 Mn USD , we shall extend our credit worthiness, collateral base and banking relations to organise a credit line from a local bank in the geographies where the client is located.
- I. SFO- 6 STEP CAPITAL INFUSION
- STEP 1 - Client LOI
- Fund Based LOI - LOI on their letterhead stating the following.
- Equity / Debt Amount - ------ In Mn USD.
- Purpose Of Borrowing - ------.
- In Principle Agreement - To provide Collateral Coverage and organize site visits for underwriting.
- STEP 2 - Collateral Coverage - This has Two Parts viz Hard & Soft
- Hard Collateral Coverage - 100 % charge on assets.
- Soft Cash Collateral Coverage - 30% of the total loan amount shall be taken upfront in a JV in UK. Against this 30 % loan collateral in cash, full 100% of the loan value shall be provided.
- STEP 3 - Site Visits For Underwriting
- On receipt of the cash collateral, our site visits for underwriting shall begin. Since the securitization process will also run in parallel as mentioned below, the definitive agreements shall be signed during such site visits conducted for underwriting. Site visits shall be client organized with Business Class Travel / Five Star Accommodation / Lodging / Boarding/ Local Logistics / Out Of Pocket Allowances.
- STEP 4 - Securitization / Holding Structure
- Reputed Global Trustees, Global Commercial Real Estate Services Company for asset due diligence + valuation , Law Firm, Company Formation Services Firm ) are our nominated authorised partners. Clients shall engage them directly to advise the securitization for collateral coverage and the offshore holding SPV.
- STEP 5 - Loan Disbursal
- Once the above three steps Collateral Coverage + Underwriting + Securitization/Holding Structure are completed, the loan disbursal process shall begin within 6 -15 weeks as per terms mentioned in our term sheet which is finalized / signed during the visit. Subsequent Investment Rounds can easily be done.
- STEP 6 - Repayment / Amortization
- DEBT - Interest of ____ % for the entire loan amount shall be taken upfront per year for cash collateral. Moratorium of --- Year on principal only within a debt investment and a repayment period of ------ years on a loan of ----- years tenure.
- EQUITY - ROI of ------ % for the entire loan amount shall be taken upfront per year for cash collateral. Equity equivalent to the balance principal shall be taken. Exit shall be mutually agreed keeping the project interests in mind. This could be also structured as CCPS/CCD.
- II- YOUR CHANCE TO BECOME AN INVESTMENT FIRM WITH US FOR FUND BASED FACILITIES
- We lend across Large Cap, Mid Cap and Small Cap investments with the smallest loan offered being 5 Mn USD and a maximum of 5 Bn USD.
- Anything above shall be on a case to case basis.
- You can take loans from us as an investment firm and onlend at higher rates.
- Your investment firm in an Offshore Financial Center ( OFC ) will enter into a strategic MoU with its intended project SPV where you want to participate as an investor / lender; whereby the terms of the investment will be documented. You will then ask your investee partner to generate a Soft Collateral from their books and issue it to the OFC entity or to SFO directly.
- Once done, such an offshore entity will then assign this to SFO to cover its ‘soft collateral’ terms.
- SFO will now, as per the terms of the lending executed with the offshore entity, set up a credit line to the tune of 5X only (subject to successful due diligence and underwriting during site visit of SFO.
- Such a credit line will be pumped into the offshore entity via a simple Loan Agreement with a 100% shares pledge charge over it and an end use of funds control agreement.
- Offshore entity will now pump the required funds into the project SPV against a secured loan / debt note subscription.
- Such notes will be secured in nature via the 100% charge on the project assets ie. Real Estate, Plant & Machinery, or any other covenants decided.
- By virtue of the controlling stakes pledge with SFO by the offshore entity; SFO will have a ‘shadow controlling charge’ on such project assets, thereby meeting its balance ‘80% hard collateral’ terms.
- Note: The soft collateral has to be assignable, transferable and divisible as per the underwriting terms of SFO.
- III - ABOUT OUR FUND BASED INVESTMENT METHODOLOGY
- Tentative Term Sheet - A tentative term sheet / concept note for a 50 Mn Loan is enclosed .
- Our Funds - To learn more about our funds, click here .
- We are also providers of 1 Mn to a few billions by way of Factoring / BG / LC / SBLC / POF / EMD / MTN / Bonds / SKR etc to support trade finance / inventory services finance / transportation services finance / receivables finance etc.
- The Non Fund Based Facilities LOI is to be submitted.
- The Non Fund Based Facilities agreement copy is then created .
- The LC procedure is shared on request.
- The POF / BG / EMD procedure is shared on request.
- We lend to individuals and firms around the world who are making impact investments to unleash the power of capital for good.
- To learn more about how we are creating impact click here .
- To learn about our Impact Measurement Methodology, click here .
- To learn more about our Impact Investing Services, click here .
- We are a NYC based Multi Family Office. We provide / seek the following partnerships also.
- Deal Sourcing Partnerships - We are currently executing / looking for Sector / Geography Agnostic Global Opportunities to place Multi Billion USD Investments into Equity / Debt / Hybrid structures within National / State / Province Governments, Municipalities, Corporates, Banks, NBFC, AIF, VC/PE, NGOs ,Cooperatives & similar entities.
- Advisory Partnerships - We are looking for an appropriate set of competencies for seamless execution of the above transactions.
-
Public / Governance Services - We boost political will by working closely with Governments & find entrepreneurial ways for investment / projects. We fund political campaigns and developmental agendas. We are looking for partners to drive this positive change in the world. Click here
to benefit from our *SFO - Make Countries Future Ready Program* where we invest 80% of any projects financing and remaining 20% the government tenders out to EPCO companies. - Build Trillion USD Wealth Portfolios - The long-term success of a family ultimately rests with the ability of the younger generation to find its place and voice so that it can continue the family legacy while also stewarding and creating wealth. To do this, the ultra-affluent must determine a way to provide the Next Generation with the opportunity, tools and encouragement to develop. If you need help to build Trillion USD wealth portfolios, join our program here .
To take things ahead, please send email through our contact form .