Asset Backed Funding Program
Our private lending group can leverage their significant gold holdings to get your project funded. They will pledge their assets to a third party who is capable of receiving and lending against the gold. The gold is pledged either via an Asset Pledge Agreement or an SKR. The third party receiving and verifying the asset, will issue a credit line to our lender that is fully secured by the gold. Your project is then funded by our lending group out of a portion of those proceeds.
This program is designed for sophisticated clients experienced in high finance who can leverage their existing relationships with banks, hedge funds or family offices to secure a Credit Line/Loan (fully underwritten by the assets) that will provide 100% funding for their projects.
This program is designed for sophisticated clients experienced in high finance who can leverage their existing relationships with banks, hedge funds or family offices to secure a Credit Line/Loan (fully underwritten by the assets) that will provide 100% funding for their projects.
HOW TO PROCEED
There is a very specific protocol for engaging our lending group on this 100% funding option. They are requesting a written fully conditional and non-binding offer sheet from the party interested in receiving the asset pledge so that they can understand the terms of the proposed transaction. Once this has been received and confirmed accepted, our group will immediately engage their banking teams to provide CIS and proof of ownership, hallmark etc. and exchange contracts and pledge agreements.
If you are able to facilitate such a transaction, the terms in writing that outline the fully conditional Term Sheet or Expression of Interest letter (to confirm the basic expected LTV, returns (for trade), or rate & term for credit, timing and process steps) along with a Bank Comfort Letter or equivalent to confirm your group's ability to execute on such an undertaking is the first step. This document should also lay out the preferred process steps that would be followed to a successful close.
With the written offer accepted, all parties engage according to the proposed process steps. These steps have been employed on a number of other recent Tier 1 Credit Lines, however, if your group cannot engage in the proposed manner then there is no viable path forward - as this structured approach must be followed.
If you are able to facilitate such a transaction, the terms in writing that outline the fully conditional Term Sheet or Expression of Interest letter (to confirm the basic expected LTV, returns (for trade), or rate & term for credit, timing and process steps) along with a Bank Comfort Letter or equivalent to confirm your group's ability to execute on such an undertaking is the first step. This document should also lay out the preferred process steps that would be followed to a successful close.
With the written offer accepted, all parties engage according to the proposed process steps. These steps have been employed on a number of other recent Tier 1 Credit Lines, however, if your group cannot engage in the proposed manner then there is no viable path forward - as this structured approach must be followed.
SETTING UP THE PROJECT LOAN
Once the path for monetizing the asset has been established, the project then goes through the lending group's usual intake process. The funds from the the above transaction become the "proof of funds" for the project loan and our lending group processes the borrower’s application to fund the project. Once the loan has been processed and accepted for funding, the Term Sheet and contracting processes complete, financing of the project can commence.
Since our lending group is financing 100% of the project, they will ask for a minor equity position in the project. Equity is calculated on a case by case basis, in accordance with the project’s profitability expectations and risk profile. The equity requirement is presented once the terms of the loan are agreed upon and the equity portion will also include a negotiated and mutually agreed upon buy-out clause.
The interest rate on the loan is dependent on the monetization parameters. If the monetization involves a credit line then the portion of capital being sent to the client for the project will be charged AT THAT SAME INTEREST RATE on the LC. If the monetization involves a payout, and therefore does not involve owning the bank interest, the project loan would be at the standard 3.5%. This is a 48 month interest only loan with capitalized interest built in if required. The other standard loan fees also apply - a 3% Lending Fee (due upon close, and drawn from the loan proceeds), closing costs and the monthly loan caretaker cost. No fees are due until the project starts receiving funding.
Since our lending group is financing 100% of the project, they will ask for a minor equity position in the project. Equity is calculated on a case by case basis, in accordance with the project’s profitability expectations and risk profile. The equity requirement is presented once the terms of the loan are agreed upon and the equity portion will also include a negotiated and mutually agreed upon buy-out clause.
The interest rate on the loan is dependent on the monetization parameters. If the monetization involves a credit line then the portion of capital being sent to the client for the project will be charged AT THAT SAME INTEREST RATE on the LC. If the monetization involves a payout, and therefore does not involve owning the bank interest, the project loan would be at the standard 3.5%. This is a 48 month interest only loan with capitalized interest built in if required. The other standard loan fees also apply - a 3% Lending Fee (due upon close, and drawn from the loan proceeds), closing costs and the monthly loan caretaker cost. No fees are due until the project starts receiving funding.
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