6 New Loan Facility Variations

www.2ndhomesfinance.com

6 NEW FUNDING OPTIONS

1. EQUITY FUND 2. JOINT VENTURE FUND 3. LOAN FUND

5. FUNDING WITH BG 6. GLOBAL FUNDING OFFER

1. Facility ECF1 - Equity Capital Fund Project Type: It is designed for construction projects.

Security: First charge over the Project plus an equity share (see below).

Cash Deposit

20% of the loan sum must be deposited

account of an Austrian Lawyer Office or deposited in the bank of the Lender against a bank

guarantee or a Standby Letter of Credit

loan. In case of guarantee / SLC it has to be returne

Currency: Euros

Term: It can be up to 15 years.

Rate: Zero interest as the Lender will hold equity in the Applicant's project.

Loan to Value Ratio: Up to 100% of cost/value

Equity Requirements:

Between 29% to 49% and lower in the event the Applicant has existing equity in their Project.

Closing Time:

It is counted from the date of the deposit and c

diligence documentation.

2. Program JVF1 - Joint Venture Fund Project Type: For all forms of development including infrastructure projects

Security: First charge over the Project plus an equity position

Loan to Value Ratio

85% of cost - Applicant must have a minimum of

deposited in the Escrow account of an Austrian Lawyer Office

Lender against a bank guarantee

be returned to the Lender after the first loan

Currency: Euros

Term: Negotiable

Interest Rate: Zero

Equity Requirement: Lender will require holding an equity position in the Project of up to 50%.

Closing Time:

It is counted from the date of the deposit and currently 30 to 45 days from

diligence documentation.


1. EQUITY FUND 2. JOINT VENTURE FUND 3. LOAN FUND 4. CONVERTIBLE

5. FUNDING WITH BG 6. GLOBAL FUNDING OFFER

Equity Capital Fund

esigned for construction projects.

First charge over the Project plus an equity share (see below).

of the loan sum must be deposited with the Lender for the terms of the loan,


guarantee or a Standby Letter of Credit for the term of the loan, repayable upon repayment of the

In case of guarantee / SLC it has to be returned to the Lender after the first loan pay out.

Zero interest as the Lender will hold equity in the Applicant's project.

Up to 100% of cost/value

49% and lower in the event the Applicant has existing equity in their Project.

rom the date of the deposit and currently 30 to 45 days from completion of all due

Joint Venture Fund

ll forms of development including infrastructure projects

First charge over the Project plus an equity position

Applicant must have a minimum of 20% (Deposit) in the form of cash

deposited in the Escrow account of an Austrian Lawyer Office or deposited in the

guarantee or a Standby Letter of Credit. In case of guarantee / SLC it has to

be returned to the Lender after the first loan pay out.

Lender will require holding an equity position in the Project of up to 50%.

rom the date of the deposit and currently 30 to 45 days from

SEPT. 2011

ONVERTIBLE SOFT LOAN

with the Lender for the terms of the loan, in the Escrow


ble upon repayment of the

d to the Lender after the first loan pay out.

49% and lower in the event the Applicant has existing equity in their Project.

urrently 30 to 45 days from completion of all due

(Deposit) in the form of cash that should be

deposited in the bank of the

. In case of guarantee / SLC it has to

Lender will require holding an equity position in the Project of up to 50%.

rom the date of the deposit and currently 30 to 45 days from completion of all due


3. Program LF1 - Loan Fund Project Type: It is suitable for completed and to be built

Security: First charge over the Project.

Cash Deposit

20% of the loan sum must be deposited

deposited in the bank of the Lender against a bank guarantee or a Standby Letter of Credit

first year of the loan at which point it will be deducted from the principal leaving 85% owing.

Currency: Euros

Term: It can be up to 15 years.

Rate: Currently 4% to 4.5% fixed for the term.

Loan to Value Ratio: Up to 100% of cost

Equity Requirement

Lender will take a 51% equity position during the term of the loan which

upon loan repayment. Lender does not require sharing project income. Therefore the Borrower has

effectively raised 100% of the project cost without having to share equity.

Closing Time

It will be counted from the date of the d

due diligence documentation.

INTEREST RATE VARIATIONS:

4% to 4.5%: in case of 15% Own Capital



LOAN AMOUNT:

Minimum 25 million Euros


Loan Fund

e for completed and to be built projects.

First charge over the Project.

of the loan sum must be deposited in the Escrow account of an Austrian Lawyer Office or

deposited in the bank of the Lender against a bank guarantee or a Standby Letter of Credit


Currently 4% to 4.5% fixed for the term.

Up to 100% of cost

position during the term of the loan which is returned to the Borrower


effectively raised 100% of the project cost without having to share equity.

rom the date of the deposit and currently 30 to 45 days from completion of all

due diligence documentation.




in the Escrow account of an Austrian Lawyer Office or

deposited in the bank of the Lender against a bank guarantee or a Standby Letter of Credit for the


is returned to the Borrower


eposit and currently 30 to 45 days from completion of all



4. CONVERTIBLE SOFT LOAN - project financing

Intention and intended clients

Projects can be financed through a convertible soft loan at almost zero interest provided that

monetary collateral appraised equal to project funding needs, is available for a period of one

year. This structure is suitable for governmental project organizations, property developers, medium

to large corporations wishing to expand.

Type of projects

Property development for (social)residential, commercial and recreational purposes.

Infrastructural projects, industrial projects.

Type of required collateral

Cash deposit, banking financial instruments including Bank Guarantees, MTN’s, Certificate of

Deposit, Governmental (sovereign) guarantees, other banking custodian guarantees.

Face Value of collateral should be equal or higher than € 50 Million.

Utilization of collateral

Collateral issued in the name of beneficial/project initiator.

Collateral will be blocked for a period of one year only. The provided collateral is at no risk.

Disbursement of project finance

Release of first funds occurs according to agreed project fund cash flow schedule and within 1

month after commencement of contract.

Finance structure

Through convertible subordinated soft loan agreement with very low to zero interest in combination

with equity participation in project joint venture with agreed exit after project value increase.

Procedure

1. Mutual agreements of intention;

2. Project(s) overview with financial forecast required;

3. Overview and validity check of collateral to utilize/proof of funds;

4. Agreement on project JV structure and disbursement of funds.

Timelines

Procedure estimated on 3-6 weeks. First funds available within 4 weeks after agreement.

Example (in euro’s)

Project Total expenditure cash out 50 million

Period of expenditure 12 months

Face Value of Guarantee provided collateral 75 Million per 12 months (1) by Project initiator

Investor finances through project JV per year 50-75 Million per 12 months (2) (3)

(1) Collateral remains blocked for period of 12 months

(2) Finance through subordinated convertible loan

(3) Percentage of funding depending on credit rating of collateral (issuer)

Total financed through 1 year finance 50 - 75 Million

Total guaranty required for period 75 Million

Period duration 12 months

Subordinated convertible loan provided until project ending with profit share through project exit or

sooner exit as agreed. When agreed loan does not need to be paid back but provider will be

granted an exit.

Based on above calculations different scenarios are possible e.g. to increase collateral amount to

fund other projects etc.

Lender procedures are not negotiable. We appreciate enquiries in strict conformity with these

possibilities and procedures, and handle in strict confidentiality. Don’t ask for a conference call with

the lender prior to any documents have been completed and exchanged and results from funds

have been expressed.


5. FUNDING WITH BANK INSTRUMENT

To lease an instrument with and without project funding included. Please follow the following

instructions.

We need:

• CIS

• Passport

• Project presentation [i.e. Business Plan and/or Executive Summary]

• Proof of Funds for 2M or more in the form of a unsanitized

1. We will review project and approve the project as a whole and the associate payout schedule

(proforma)

2. Once we approve we will send out a contract. Upon execution of the contract we will be happy

to show proof of capability and evidence of historical transactions.

3. Client will then wire funds that will be

cutting the asset which could be a BG, SBLC or Cash Account. A table top closing option is

welcomed. Client can close in our

4. Within 5 days or less we will show evidence of the asset and then begin

perform to fund the project at 100% Loan to Cost.

We will consider deferring the balance but you need to present a strong position as to how the

balance is going to be paid in the agreed timeframe. If the client fails to send a wir

2PM EST on the due date. We will immediately collapse on the asset and your bank fees of 2M will

not be refunded as indicated in the contract.

6. GLOBAL PROJECT FUNDING

If someone wants to fund a project.

to 100% of the costs requested. Using an asset of 100M can successfully fund a project up to 1.5

Billion.

We use the same procedures as leasing an instrument but the balance owed

will be paid out on the 1st tranche that has been preapproved for the funding.

Total fee is 12%. [Not including a broker referral fee at 1%]

client and the balance paid by the monetization.

On 1st tranche we will pay ourselves the difference of the leasing fee of 10% and then wire out 1

round of funding.

Site visits will probably happen regularly between tranches.

participation of the project which will be determined

file submission.

If you don't have the 2M to invest there is

Minimum request accepted is 10M with no max request

Please Read Carefully:

THERE are no guarantees made or implied to funding

dates. Only upon proper application, approval and

issuance of contract from provider/escrow attorney can

an approximate funding date be determined.

Choices and options enough to let

Services guide

Feel free to con

2ndHomes Int.:


5. FUNDING WITH BANK INSTRUMENT


Project presentation [i.e. Business Plan and/or Executive Summary]

Proof of Funds for 2M or more in the form of a unsanitized Tear Sheet

We will review project and approve the project as a whole and the associate payout schedule

Once we approve we will send out a contract. Upon execution of the contract we will be happy

to show proof of capability and evidence of historical transactions.

Client will then wire funds that will be utilized (not escrowed) for the banki


welcomed. Client can close in our providers office in Orlando, FL.

Within 5 days or less we will show evidence of the asset and then begin to make the instrument

perform to fund the project at 100% Loan to Cost.


balance is going to be paid in the agreed timeframe. If the client fails to send a wir


not be refunded as indicated in the contract.

6. GLOBAL PROJECT FUNDING

If someone wants to fund a project. We can utilize our assets for monetization to funds requests up


We use the same procedures as leasing an instrument but the balance owed


[Not including a broker referral fee at 1%] 2 Million deposit which is

client and the balance paid by the monetization.

che we will pay ourselves the difference of the leasing fee of 10% and then wire out 1

Site visits will probably happen regularly between tranches. We may want a JV or some sort of

participation of the project which will be determined after underwriting and reviewing a complete

If you don't have the 2M to invest there is no other option available as we securitized our loans.

inimum request accepted is 10M with no max request

Please Read Carefully:

are no guarantees made or implied to funding



an approximate funding date be determined.

Choices and options enough to let 2ndHomes Financial

guide you through your best financial solutions!

Feel free to contact us if you need any further information.

2ndHomes Int.: Award Winner for Best Financial Services 2010!


Tear Sheet or Bank Statement.

We will review project and approve the project as a whole and the associate payout schedule

Once we approve we will send out a contract. Upon execution of the contract we will be happy

(not escrowed) for the banking fees associated with


to make the instrument


balance is going to be paid in the agreed timeframe. If the client fails to send a wire by FED cutoff


We can utilize our assets for monetization to funds requests up


We use the same procedures as leasing an instrument but the balance owed on the lease fee of


2 Million deposit which is utilized from the

che we will pay ourselves the difference of the leasing fee of 10% and then wire out 1st

We may want a JV or some sort of

after underwriting and reviewing a complete

option available as we securitized our loans.

are no guarantees made or implied to funding



2ndHomes Financial

through your best financial solutions!

nformation.

2010!

Economy & Finance

6 New Loan Facility Variations