After your Project qualifies, Investor Group of Companies (IGC) will send for your review a preliminary non-binding offer of an agreed amount to fund the project.
An example of a preliminary non-binding offer with Terms and Conditions you can find below:
– IGC will fund up to 100% of the future project costs, including fees, in the form of an interest free non-recourse shareholders’ loan made in either Pounds Sterling, Euros or US Dollars;
– IGC in return will take a minimum of 50% shareholding in the Project Company via a UK SPV;
– IGC also requires a Capital Contribution to be made by the Applicant;
– The minimum Capital Contribution amount is 750,000 for projects up to 7,499,999 and 1,500,000 for projects from 7,500,000 up to 14,999,999 and thereafter 10% of the project loan;
– The Capital Contribution is returned to the Applicant in full after repayment of the loan amount and the acquiring of IGC’s shareholding in the Project Company;
– The term of the loan can be up to 7 years;
– In the case of a development project, there can be a grace period before repayments are made;
– The loan is made against an agreed drawdown schedule;
– Repayments are made against an agreed repayment schedule;
– Once the loan is repaid, the Applicant will acquire IGC’s shareholding in the Project Company;
– The purchase of the shares will be at Fair Market Value, which is independently determined;
– IGC will have equal Board representation on the Project Company and, for the duration of the loan, the Chairmanship of the Board and casting vote;
– A Project Development and Consultancy Fee of 5% (five percent) of the total investment amount, is payable to IGC by the Applicant upon successful funding of the Project. The Project Development and Consultancy Fee will be included in the Drawdown Schedule on a pro rata basis and hence will form part of the total investment amount. In other words, it may be borrowed, and forms part of the Investment provided by IGC.
FUNDING PROCESS
– Normally 12 -16 weeks;
– Initial Applicant’s documentation reviewed – i.e. Executive Summary, Business Plan, Financial Model and Budgets;
– Application form completed by Applicant;
– Full documentation to be provided by the Applicant – Full Business Plan, Accounts etc;
– Subject to positive review, the application is submitted to IGC’s UK Project Review Committee;
– Meeting of IGC’s UK Project Review Committee to discuss project – the Committee meets weekly;
– Result of meeting conveyed to Applicant;
– Submission to IGC’s Credit Committee in Switzerland for approval;
– Assuming the response is positive – IGC’s Investment Proposal Letter (Partner Financing Agreement) is submitted to the Applicant (inclusive of Heads of Terms and Due Diligence requirements);
– Investment Proposal signed and returned;
– Capital Contribution made to IGC Capital Fund (90%) and IGC Management Services Ltd (10%) or as determined by IGC;
– Due Diligence commences – normally 4-6 weeks;
– Subject to a positive Due Diligence outcome, the project is submitted to IGC Capital Fund’s Investment Committee for final approval;
– IGC Capital Fund Board ratification is then required;
– Loan Agreement and related Security Agreements (Deed of Assignment – Insurances, Share Option Agreement and Promoter Security Agreement (fixed charge over the Applicant’s shares in the Project Company) issued and signed;
– Shareholders’ Agreement issued and signed;
– Drawdown commences as per agreed schedule.
If the Project Owner, Sponsors and Shareholders have confirmed that they can apply to a funding process as per above general overview and are willing to comply with it, please go to next step and send to us the Project Financing Application along with an Executive Summary of the Project. We will reply you in 2-3 days from the receipt of your request.