FINANCE PROGRAMS

INVESTMENT PROCEDURE

Project and Turnkey Construction

 
The following is The Seven-Step Summary of the procedures applies by Logos Investment Group (LIG) for Project and Turnkey Construction Financing Program.  This is basic information to be followed for any investment arrangement made by LIG for a foreign National agency or Ministry applicant (CLIENT).
 
STEP 1. PROJECT SELECTION
CLIENT will present to LIG several projects in need of financing. LIG will establish priority for two to three investment projects from the list presented by the CLIENT.  LIG will arrange funding and investment construction projects at once, subject to repayment plan preliminary arrangements with the applicant.
 
STEP 2. CONTINGENCY AGREEMENT WITH MASTER PLAN
1) CLIENT will issue a Contingency Agreement to LIG for a funding arrangement along with the master plan or an Executive Summary of the project. The Contingency Agreement does not require or implied any obligations or responsibilities by both, CLIENT or LIG, just inform to LIG the need for resources for a project and a way to repay the resources.
2) With the Contingency Agreement, LIG will be able to initiate negotiations with interested companies for a feasibility study along with the main construction.
 
STEP 3. DEFINING THE PROJECT FUNDS
With Contingency Agreement signed by the proper official of the Government agency, LIG will arrange the loan within 60days. Depending on the nature of the project, the timeline, interest rate and other requirements will vary.  But in general, we seek a faster return on the investment either, with repayment with international currency or natural resources traded internationally. Upon loan confirmation from the lenders, LIG will make a main agreement with the CLIENT as follows:  
1)  For any direct loan, such as  factoring the maximum annual interest rate of 6%, however, depending on the  country credit rating and other country information, the interest might be as low as 3%
2)  For investments in a turnkey based construction. LIG will arrange the entire construction fund/loan from and through an international and experienced construction company.
 
STEP 4. ARRANGEMENT OF THE FUNDING  
1) With Contingency Agreement, LIG will discuss the PF construction loan arrangement and negotiate with the bank and private funding entities in Asia.
2) LIG will notify CLIENT for feasibility study schedules.
 
STEP 5. AGREEMENT FOR FEASIBILITY STUDY
1)  LIG will make an agreement for the feasibility study and conduct a 
2)  Site survey to estimate the actual cost of the construction.  The survey will be conducted with two or three construction company officials and technical personnel. All feasibility study costs will be paid by the CLIENT which will be included in the total loan package and pay first through the repayment agreement
3)  Feasibility study will be completed within 2 to 6 CLIENT and the statement will be delivered to the CLIENT including the project total cost and time of the construction.
4)  During the feasibility study, the PF loan will be pre-approved from the bank 
5)  And approved from the private funding entities as well.
 
STEP 6. DEFINITIVE SIGNED AGREEMENT
The CLIENT and LIG will make an investment & construction agreement with contents as follows.
1)  Total amount of the Loan will be guaranteed by the government agency through standard procedure for International Loan Guaranties (ex. central bank).
2)  5-10 years of term loan with a whole amount of investment will be paid by natural resources (ex. Oil, gold, etc.) on a regular agreed basis, depending on the amount to the loan.
3)  Interest rate: London Libor + 1% - for the construction base only
4)  Initial payment date will be set to the first day of constructions.
 
STEP 7. INITIAL TRANSACTIONS
           Upon signing a definitive agreement between CLIENT and LIG:
1)     LIG will start paying the construction cost following the schedule from the financial agency or agencies.
2)     CLIENT will start providing the crude oil shipment to LIG according to the schedule at the FOB Ecuador port.