LOAN APPLICATION PROCEDURES

Submit a PRELIMINARY PROJECT SUMMARY and BORROWER CORPORATE INFORMATION (Executive Summary) for our review. If project is found to be worthy of the financing effort, two copies of a detailed study or business plan are required to determine whether to appraise the project. This study must be written in English.

Please refer to EXHIBIT A: PREPARING YOUR LOAN PROPOSAL, and EXHIBIT B: PROJECT CATEGORIES ELIGIBLE FOR BANK GUARANTEE-FEE FUNDING.

See Asset Capital Finance Fee Sstructure to engage our company services in the loan arrangement process.

Upon favorable indication from a lending group on the Project Feasibility Study, a Loan Arrangement Fee Agreement will be completed and signed by the project sponsors/borrowers and Asset Capital Finance.

Once the Loan Arrangement Fee Agreement is formalized, the final copy of the Feasibility Study is submitted to lending group which will start its "due diligence" on said project. Usually, an appraisal team comprising an investment officer with financial expertise and knowledge of the country in which the project is located and an engineer with relevant technical expertise is assigned to perform part of the "due diligence". This team is responsible for fully evaluating the technical, financial and economic aspects of the projects. This process entails visits to the project site and extensive discussion with the project sponsors/borrowers. After returning to headquarters, the team submits its recommendations to senior management. If financing a project is approved, drafts appropriate documents.

Lender groups supervise their investment in loan closely, consult periodically with project management, send field missions to visit the enterprise, and require quarterly (every 3 months) progress reports. It also requires annual financial statement audited by independent public accountants.

Aside from the required supervision due to bank guarantee-free status, the leadership in management rests upon the project sponsors and enterprises themselves