INFORMATION

INFORMATION ON LOAN FUNDING

FROM THE INTERNATIONAL INVESTMENT FUND

1. PARTNERSHIP

The borrower (the project owner): That is a private enterprise, limited liability company, joint-stock company, corporation, and other economic entitties that need loan funding for projects of USD 30 million or more.

The lender (the investment fund): These are international financial institutions that provide loan funding for large-scale projects.

The consultant (Sunrise Investment Consulting LLC): Arranges loan funding for industrial, commercial, and service projects in the public and private sectors. As the sole and exclusive representative in countries designated by the international investment fund headquartered in The United Arab Emirates (UAE) to evaluate the project’s feasibility, coordinate, and supervise the investment fund loan funding.

2. PROJECT CLASSIFICATION

Loan funding for projects is classified as follows:

New project:

- The project owner completed the project legal records approved by the authorized agencies, had a site clearance without dispute, and fully paid the land lease (or purchasing land). It is a shovel-ready project or project under construction with project owner's equity. The project owner uses loan funding to carry out the project, pay off the project's outstanding balance, and take back the project ownership documents if the project is mortgaged at a bank.

- The project owner uses loan funding to supplement capital sources, enhance liquidity, and expand business networks (applicable to the project owner who is a financial institution such as a commercial bank, insurance enterprise, and securities company that needs loan funding of 50 million USD or more with a maximum loan funding term of 05 years).

- The project owner uses loan funding to execute a business merger and acquisition transaction. The involved parties signed an agreement in principle for the transaction.

Refinancing project:

The project owner has operated commercially to generate revenue and mortgaged the project at a bank. The project owner uses loan funding to pay off the project's outstanding balance and take back the project ownership documents from this bank.

3. FEATURES OF LOAN FUNDING

- Loan funding of up to 70% of the new project’s total capital investment of USD 30 million or more. The rest of the 30% is the project owner’s equity. 

- Loan funding of up to 85% of the refinancing project’s outstanding balance of USD 30 million or more. The rest of the 15% is the project owner’s equity.

- No requirement for a loan funding guarantee from the Government or banks.

- The project owner does not need to mortgage the project for loan funding.

- The project owner has full of ownership, operation and management of the project.

- The project owner repays loan funding (principal and interest) to the investment fund according to the project’s gradually decreasing balance.

- The project owner does not pay any upfront fees.

4. LOAN FUNDING TERM, GRACE PERIOD & LOAN FUNDING REPAYMENT SCHEDULE

- The maximum loan funding term is to 15 years.

- The grace period is specified in the Memorandum of Understanding (MOU) signed between the investment fund and the project owner. The grace period is not applicable for refinancing project and financial institutions.

- The loan funding repayment schedule (principal and interest) are specified in the MOU.

5. LOAN FUNDING INTEREST RATE

From 3%/year and up.

6. LOAN FUNDING SECURITY

Because the project is unused as collateral, the project owner and the insurance company designated by the investment fund sign the security contract for the insurance company standouts to secure loan funding for the project owner from the investment fund. The project owner pays the insurance company the one-time loan funding security fee of 0.25% of the project loan funding when both parties sign the security contract.

7. LOAN FUNDING PROCESS

The project owner refers to this INFORMATION and provides all copies of the project legal records approved by the authorized agencies according to the requirements below for Sunrise Investment Consulting LLC (hereinafter referred to as the consultant) to evaluate the project’s feasibility.

These copies are in English and certified (no need for certification of requirements 7.6.,7.7., 7.8., 7.9., and 7.10.) by a notary public or administrative agency including:

7.1. Company registration certificate or Certificate of incorporation.

7.2. Company charter or Articles of incorporation.

7.3. Decision on approval of the project investment policy or Investment registration certificate.

7.4. A copy of a valid passport or identity card of the legal representative (Chairman or CEO) if it is a private enterprise or a one-member limited liability company (certify only if using a passport copy having the English language).

7.5. Copies of valid passports or identity cards of the legal representative (Chairman or CEO) and each board member if it is a joint name partnership, joint venture partnership, general partnership, multi-member limited liability company, joint-stock company, and corporation (certify only if using passport copies having the English language).

7.6. Prepare letter of the project loan funding request. The consultant provides this letter template.

7.7. Fill out the project loan funding application. The consultant provides this form.

7.8. Project summary in 02 pages: Half of the first page introduces the company overview. The remaining is the project brief with the project coordinates to view the outline from a distance.

7.9. Loan funding withdrawal plan and loan funding repayment plan.

7.10. A five-year business plan for the project.

7.11. The company's financial statements in the last three years have been audited (or reviewed) to international standards by an international auditor with branches in the country like Ernst & Young, PricewaterhouseCoopers, KPMG, and Deloitte.

7.12. The refinancing project’s financial statements in the last three years (or from the commercial operation date to the latest year) have been audited (or reviewed) by an international auditor.

7.13. Signed loan agreement(s) between the project owner and the bank(s) in the project owner’s country and abroad.

7.14. Signed bond agreement(s) between the project owner and the bondholder(s) in the project owner’s country and abroad.

7.15. A written letter from the tax department confirming whether the project owner has overdue taxes.

7.16. Bank documents confirming whether the project owner has overdue debts.

7.17. A written letter from the bank to confirm the project owner's equity of a minimum of at least 30% of the new project's total capital investment or a minimum of at least 15% of the refinancing project's outstanding balance. This amount stays in a bank account until the consultant notifies the project owner of the approval or refusal of the loan funding.

7.18. Opening of the project account at one of the global banks.

Due to international transactions in USD, the project owner opens the project account at one of the global banks with branches in the project owner’s country like Standard Chartered Bank, HSBC, and Citibank (hereinafter referred to as the project bank) to deposit the project owner’s equity, receive loan funding, and perform banking transactions and services related to this account. The bank provides an application for the opening of the project account.

After thoroughly evaluating the project's feasibility, the project owner and the consultant sign a consulting agreement.

8. PROJECT APPROVAL PROCESS

8.1. Within 30 working days from the consulting agreement signing date, the consultant notifies the project owner of the approval or refusal of the loan funding.

8.2. Within 10 working days from the approved notification date:

- The insurance company and the project owner sign the security contract specifying the responsibilities and rights of each party. The insurance company provides this contract template.

- The investment fund and the project owner sign the MOU specifying the responsibilities and rights of each party. The investment fund provides this MOU template.

- The project owner registers the foreign loan funding with the Government's relevant authority after MOU is signed.

9. TRANSFER OF LOAN FUNDING

9.1. Within 10 working days from the dates of the security contract, MOU, and the registration of foreign loan funding with the Government's relevant authority (if required)  come into effect, the investment fund bank transfers the loan funding in USD to the project bank.

9.2. The project owner authorizes the project bank to automatically pay off the  project’s outstanding balance (new or refinancing) if it is mortgaged at a bank. The project owner takes back the project ownership documents from this bank.

10. LOAN FUNDING FEE

10.1. The project owner is committed to paying the consultant in USD the one-time loan funding fee of 4% of the project loan funding.

10.2. The consultant receives the loan funding fee when the investment fund and the project owner sign the MOU. This fee is paid by deducting from the first tranche of loan funding disbursed by the project bank to the project owner, regardless of whether the project’s total loan funding is transferred to the project owner in a lump sum or is drawn down by the project owner in installments.

10.3. The project owner and the consultant authorize the project bank to automatically transfer the loan funding fee from the project account to the account at the bank designated by the consultant.

11. TOTAL LOAN FUNDING COST

As per the general interpretation as follows:

The project loan funding: USD 30,000,000.

The interest rate: 3%/year.

The loan funding term: 10 years.

(1) The project owner repays the investment fund for the project loan funding (principal and interest) according to the gradually decreasing balance of the project in 10 years: USD 34,760,000.

(2) The project owner pays the consultant the one-time loan funding fee of 4% of the project loan funding: USD 1,200,000 (USD 30,000,000 x 4%).

(3) The project owner pays the insurance company the one-time loan funding security fee of 0.25% of the project loan funding: USD 75,000 (USD 30,000,000 x 0.25%).

The project's total loan funding cost includes the loan funding repayment, loan funding fee, and loan funding security fee for 10 years:

USD 36,035,000 [(1) USD 34,760,000 + (2) USD 1,200,000 + (3) USD 75,000] in which interest and fees for 10 years are: USD 6,035,000 (the project total loan funding cost of USD 36,035,000 - the project loan funding of USD 30,000,000).

12. THE BENEFITS OF LOAN FUNDING FROM THE  INVESTMENT FUND.

Comparing the interest rate of 3%/year and features of the investment fund with the long-term lending rate of domestic banks (it is about 7%/year in the US), the investment fund loan funding practically supports project owners who need that loan funding to expand the production, business, and services activities or reduce the total borrowing costs to maximize company profits.

NOTES:

- The terms "the project owner" and "the company" are synonymous in this INFORMATION.

- Information on loan funding from the international investment fund is for reference and subject to change without prior notice. Please visit www.sunrise-sic.com for the updated details.