Loans for Large-Scale Projects:
Tailored Financing Solutions by IFC FINANS
At IFC FINANS, we offer loan solutions designed specifically for larger projects ranging from €10 million to €500 million, with an average loan size of €25 million. We understand that every project is unique, so we take a flexible approach to structure loans that meet the specific needs of our clients. Our financial instruments are built around the project’s cash flow and repayment capacity, ensuring the best possible outcome for both parties.
Flexible Loan Structure
Our loan solutions are customized based on the project and client requirements. We can offer loans in different currencies and structure interest rates according to the market conditions and the client's preferences. Whether it's a fixed or floating rate, we ensure that the loan terms are competitive and aligned with the project’s financial sensitivity.
Fees and Charges
In addition to the base rate, our loans include a margin that reflects both the project-specific risk and country risk. This margin, along with potential fees for front-end commissions, commitment fees, or prepayment penalties, is fully transparent and confidential between the client and IFC FINANS. Our clients are also responsible for reimbursing out-of-pocket expenses related to technical consultants, legal counsel, or travel, in line with industry practices.
Hedging and Risk Management
IFC FINANS provides financial risk management tools to help clients hedge against currency, interest rate, and commodity price risks. Our hedging instruments include currency swaps, interest rate swaps, caps, collars, and commodity swaps, ensuring that clients are protected against market volatility and financial uncertainties.
Competitive Interest Rate
The interest rates for IFC FINANS loans are determined by current market rates and designed to be highly competitive. Our financial terms are customized to each project, ensuring optimal profitability and risk management. Whether utilizing fixed or floating interest rates (such as LIBOR), we help clients manage interest rate exposure, providing a combination of both fixed and floating rate loans when necessary
Additional Lending Terms
Each loan agreement includes covenants that cover financial ratios, limits on additional indebtedness, and other relevant terms. These covenants are negotiated with the client to ensure a balanced and secure financial agreement. Repayment of loans is generally structured in semi-annual instalments, although longer maturities (up to 18 years) can be considered for major infrastructure projects.
Loans for Smaller Projects: Supporting MSMEs
For smaller projects, particularly those led by micro, small, and medium-sized enterprises (MSMEs), IFC FINANS offers tailored financing through local partner banks. These MSMEs can access our loans by applying directly through local financial institutions, which are equipped to provide financing solutions aligned with local market needs.
Key features of our loans include:
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Loan amounts typically ranging from €10 million to €500 million, with flexibility for larger or smaller projects.
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Options for fixed or floating interest rates
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Various debt structures, including senior, subordinated, mezzanine, and convertible debt.
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Maturity periods that range from short to long term, up to 15 years, with potential grace periods tailored to the project
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Loans can be denominated in major foreign or local currencies.
Security and Collateral
IFC FINANS typically requires collateral to secure project loans. Security may include:
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Mortgages on fixed assets such as land, buildings, or plants.
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Pledges of movable assets like equipment.
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Assignment of the company’s currency earnings.
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Pledges of the sponsor's shares in the project company or over bank accounts.
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Assignment of the company’s insurance policies or other contractual benefits.
Key Requirements for MSME Loans
To qualify for loans, businesses must present:
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A sound business plan aimed at starting or expanding the company.
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Strong management with a proven track record.
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Competitive products in the market.
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Comprehensive ownership and financial details.
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Adequate security in the form of pledges or mortgages.
Additionally, businesses are expected to adhere to environmental guidelines, and in some cases, majority state-owned companies or projects backed by government guarantees may qualify for funding. MSMEs are also required to make an equity contribution, typically around 25%, as part of the financing arrangement.
IFC FINANS remains committed to providing flexible, competitive loan solutions for projects of all sizes, ensuring that businesses can grow and thrive with the support of expertly tailored financial products. Whether you are seeking financing for large-scale infrastructure or smaller business ventures, our loans are designed to meet your specific needs, backed by a dedicated team of financial experts ready to assist you every step of the way.
