Ref. 0212-2411
Terms and Conditions for Long-Term Project Financing – Soft Loan
A| General Conditions:
- Loan Purpose: Available for both public and private large-scale projects.
- Backing: The loan is backed by a major European international bank and is suitable for projects starting from 500 million USD/EUR, regardless of their scope.
- Loan Duration: 10 years.
- Grace Period: 2 years.
- Interest Rate: Fixed annual interest rate starting at 5% on the injected capital.
- Feasibility Study Requirement: The project must have a realistic feasibility study conducted by a well-known and recognized entity.
- Audit Process: The feasibility study will be submitted to an international audit agency for re-evaluation and assessment. An audit team may visit the project site if deemed necessary.
- Audit Cost: Between $11,000 and $15,000.
- Loan Confirmation: If the audit confirms project feasibility, the bank will issue a loan confirmation and establish a contract with the borrower.
B| Important Notes:
- Bank terms are contingent on the outcome of the feasibility audit. If the audit is positive, the bank will officially approve financing for the project.
- After receiving the official documents from the bank, the project owner is required to pay the audit invoice as stated in point A8.
- Fund Transfer: Once the audit payment is confirmed, the funds will be transferred to the borrower.
C| Application Procedure:
If you agree to the terms and conditions outlined above, please submit a Letter of Intent (LOI) addressed to AFETOP on behalf of our loan supervisor, Mr. Kazim Al Ostad, including the following documents:
- A project summary.
- The complete feasibility study.
- Company profile of the loan applicant.
- Company commercial license or proof of official registration with local authorities.
- Ownership certificate for the property (real estate) related to the project.
- Know Your Customer (KYC) documentation for the project owner.
- Confirmation in the LOI that the project owner agrees to allow the audit team to visit the project site, if necessary, and to cover the audit costs, as previously outlined.
For any questions, further details, or additional requirements, please do not hesitate to contact us.