INNOVATIVE FUNDING SOLUTIONS
Achieve Your Goals
With foreign direct investment in Africa at an all time low, high cost of capital in local markets, slow economic growth and massive outflows of foreign capital from our borders, tough global trading conditions, difficult regulations and red tape….......
Growing or expanding private companies in Africa including South Africa is a massive task. But if we’re serious about meeting our most urgent requirements by growing our base of job-creating private companies, something needs to be done. All countries in Africa are in desperate need for job creation, we need to delve deep in order to understand the critical constraints needed to unlock this kind of growth.
Underwriting loan capital with A+ rated insurance guarantees is the type of innovation that Bluestone can deliver which reduces the investor/funder risk profile.
Get in touch to learn more about how this service can help you.
Innovative Funding Solutions
BONDS AND GUARANTEES
Partnering with SA Guarantee Ltd (Seychelles) a registered Cell Captive with Mutual & Federal Risk Financing Limited (Fitch Rating: AAA with stable outlook) and Bentley Legal HSBC Escrow Services.
Offshore HSBC ESCROW Fiduciary accounts in Mauritius & London
VERITAS DEBT FUNDING
Veritas will provide 100% funding at an interest rate of 8.5% (fixed) p.a in local currency over a maximum period of 20 years. (No FOREX challenges)
Viable & sustainable project on merit but we prefer real estate development ; green projects and purchase of a business. Banks charge 30% deposit, the Funder charges an administration fee of 1% (see Pre-Requirement below) and protects the 1% with a performance Bond from AAA rated underwriter. The minimum fee is €325 000.00
No surety is required.
Veritas will take up 51% shareholding in the Company to be funded and this shareholding will reduce (2.55%) on an annual basis on condition that the Client repays the loan diligently, with the result that after the loan period the Client would not have an external shareholder. Veritas can be substituted by another shareholder or the loan can be settled earlier, without any penalties, in which case the shareholding of Veritas will cease.
Deferred acquisition of bank instruments (BG’s/SBLC’s/US treasury bills/Euro bonds) at a premium 113% of face value +2% commission.
Delivery however will be executed at 13%+2% initial payment.
You and your bank have full effective ownership of the instrument for 350 days, before paying the final balance of 100% or returning the Instrument.
On day 350 the balance becomes due and is to be paid and the purchase is complete or Instrument returned.
In the event that the final instalment is not paid on day 350 your bank must undertake to return the instrument free clean and unencumbered on day 350.
The down payment instalment is forfeit.
Minimum transaction is $15.1 Mn which covers Bank SWIFT fees
ASSET BOND STRUCTURE
Many funders want some form of guarantee for their projects and an alternate approach can be through the Private Placement Property bond issue where the "assets" of the project (future cashflows, off-take agreements, assets underground (mining), shareholding etc.) are pledged and embedded in the bond. Put differently, you would issue a bond against the project which they would purchase for $x and in the event of default on the debt note (repayments) they would redeem the bonds and take the "assets" of the project.
They would purchase the Bond at a discount 80% of face value and already they have made a 20% return on their investment.
A bond with a ISIN no takes about 2 weeks (14 banking days) to issue and less expensive to issue and lot more simpler than a bank guarantee.
Plus Bonds are tradable and if the asset is a top class Mauritian Hotel or rare Earth Mine then they are very desirable and in demand