Government Loans

Bond Asian Ventures (BAV) provides competitively priced debt funding to national and regional governments on an off market basis, with the option for the debt to go on market at an agreed point in the project process (See BAV Bonds - Summary).

The process is as follows:

1. Informal discussions take place between BAV’s introducers and the counter party to agree: • The size of the loan;

   • The duration of the loan;

   • The acceptable parameters for the interest rate coupon;

   • Any capital repayment and interest holidays;

   • The drawdown schedule;

   • The required size of the counter party’s bank guarantee (or alternative security, see BAV De Risking Models - Summary).

2. BAV issues a high level offer letter to the counter party’s decision maker, which the decision maker must sign and return to BAV in order to formally and directly engage.

3. The decision maker must meet with BAV’s principals and attorneys at their offices in London to agree the detailed terms of the loan.

4. BAV’s attorneys will prepare the conditional binding term sheet, which must be approved by the country party’s attorneys and signed by both parties.

5. BAV will establish a special purpose vehicle (SPV) for the project in London or Switzerland, and open an account with a high rated international bank.

6. The counter party will instruct its bank to issue a BG (through its correspondent international bank) to the SPV account. Receipt of the BG will trigger the conditional binding term sheet to become a binding term sheet.

7. BAV will issue an investment memorandum (IM) to its investor panel and convert pledges into liquid funds, which are deposited into the SPV account.

8. Funds will be drawn down from the main SPV account into the counter party’s designated incountry bank account in accordance with the agreed drawdown schedule.