LENDER GROUP(S) BANKING FEES

Usually to get the project funded, there will be a charge of 1% (ONE PERCENT) banking fee by the lender group(s) providing project financing. Whenever necessary, an additional 1% (ONE PERCENT) syndication fee is required for the cost of gathering a group of international banks to put the required amount of funds together for a project. Other fees to cover legal, administrative costs, etc., may be applicable. The following is a reference example of the breakdown of fees involved:

Example:

Take loan for $100,000,000 US (ONE HUNDRED MILLION USD). 1%(ONE PERCENT) banking fee is $1,000,000 US (ONE MILLION USD). 1% (ONE PERCENT) syndication fee is $ 1,000,000 US (ONE MILLION USD) . Legal fees vary in accordance with the work involved, but the reference figure is 1/8 (ONE-EIGHT) of 1% (ONE PERCENT) or less subject to negotiation.

HOW ARE FEES PAID FOR? The following flexible approach has been negotiated with success by Asset Capital Finance N.A. INC. to relieve borrowers' financial pressure.

Example:

For borrowing $100,000,000 US (ONE HUNDRED MILLION USD) the lender group(s) would finance, say, $102,125,000 US (ONE HUNDRED TWO MILLION, ONE HUNDRED TWENTY-FIVE THOUSAND USD). Upon closing, the lender group(s) deduct $2,125,000 US (TWO MILLION, ONE HUNDRED TWENTY-FIVE THOUSAND USD) to cover its 1% (ONE PERCENT) banking fee, 1% (ONE PERCENT) syndication fee, and $125,000 US (ONE HUNDRED TWENTY-FIVE THOUSAND USD) legal costs, provide the borrower $100,000,000 US (ONE HUNDRED MILLION USD).

The drop of bank guarantee (as a Standby Letter of Credit) requirement creates certain risks for lender groups in the safety of their money. For this reason, projects submitted for loan consideration are carefully analyzed as to their feasibility. Therefore, borrower's documents must be prepared in an absolutely professional manner to the satisfaction of the lender groups.

LENDER GROUPS' ADMINISTRATIVE FEE

Lender Group(s) charge an annual Loan Administrative Fee. Project sponsor/borrowers have complete responsibility to use the funds strictly for business purposes with regular briefings submitted to the lender group(s) on the progress of project functioning.