FOR COVER OF COMMERCIAL RISK/PROJECT RISK ON MAJOR DELIVERIES OF CAPITAL GOODS
To allow GIEK to assess major applications, a full description and business plan should be supplied. The plan should contain information on the following:
1. The buyer
- name, address, type of company and date of formation
- number of shares/partnership holdings in the company and a list of shareholders
- share capital/subordinated loan capital (wherever applicable)
- names/details of the directors and management of the company
- P&L accounts and balance sheet for the last three years
2. The project
- a description of the project
- market conditions/agreements, if applicable
- business strategy
- project status and progress plan
3. Financing/budgets
- estimated capital requirements and sources of funding
- equity capital, long term loans/export credits and operating credits
- where applicable, other risk takers or co-guarantors, their conditions and their degree of participation
- overview of the security available to GIEK (mortgage, guarantees etc.)
Additional information required in cases of project financing
-
an assessment of the project performed by a co-guarantor or by an approved,
independent source - budgeted result, cash flow and balance sheet for the three to five first years
- details and assessment of key pre-conditions for profitability
- assessment of risk points/financial sensitivity
Normal terms and conditions
- minimum of 15 % cash payment (20% in the case of ships) equal semi-annual instalments of the loan
- the credit period will normally be up to five years (12 years in the case of ships, up to 18 years in the case of renewable energy)
- various forms of security may be required depending on the type of project and the buyer
- the percentage of cover will depend on the type of project, security rights etc.
GIEK will charge the applicant for any costs incurred in connection with the agreed use of external consultants to assess the application or for work on the guarantee documentation.
