Disclaimer

This Term Sheet is prepared by Financely Group LLC ("Financely") to outline the key terms under which Financely offers non-recourse project financing. It is intended for discussion and is not a legally binding commitment. Finalization is contingent upon due diligence, credit approval, and definitive documentation.

Lender Information

• Lender: Financely Group LLC
• Contact Information: Provided upon request
• Address: Principal office located in New York, USA

Project and Sponsor Information

• Project Type: Includes renewable energy, infrastructure projects such as roads, bridges, and tunnels, water treatment plants, and large-scale real estate developments.
• Project Location: North America, Sub-Saharan Africa, Latin America, and Asia
• Sponsor: Required to demonstrate a proven track record in executing similar scale projects successfully.

Financing Terms

• Loan Amount: Starts at minimum US$20M. Loan syndication with partner institutions may be arranged for amounts exceeding US$100M.
• Interest Rate: Benchmark Rate (e.g., LIBOR, SOFR) + 3% to 5%, adjusted based on the project’s risk profile.
• Term: 5 to 20 years, matching the project's operational life and cash flow projections.
• Origination Fee: 2% of the total loan amount, payable upon the term sheet signature.
• Equity Contribution: U.S.-based sponsors: 10%; Non-U.S. sponsors: 25%.

Security and Collateral

• A security package covering all project assets, contracts, and revenues.
• First-priority liens on project-related physical and intellectual properties.
• Assignment of significant project contracts, including EPC (Engineering, Procurement, and Construction), O&M (Operations and Maintenance), and offtake agreements.
• Control mechanisms over project accounts to prioritize debt service.

Covenants

• Financial Covenants: Minimum Debt-Service Coverage Ratio (DSCR) set at 1.3x, alongside leverage limits.
• Performance Covenants: Compliance with agreed project development and operational milestones.
• Reporting Requirements: Quarterly and annual financial and operational reporting, including prompt disclosure of material changes.

Required Documentation

• Comprehensive project feasibility study and business plan with financial projections.
• Proof of equity commitment.
• Legal opinions confirming project viability and regulatory compliance.
• Environmental impact assessments.
• Comprehensive insurance coverage details for all project stages.

Conditions Precedent

• Completion of Financely’s due diligence.
• All project contracts finalized and regulatory approvals obtained.
• Formation of a Special Purpose Vehicle (SPV) for the project.
• In cases of syndication, execution of an inter-creditor agreement is required.

Governing Law and Jurisdiction

Governing law is the State of New York, USA, with exclusive jurisdiction in New York courts for disputes.

Next Steps

For a detailed and definitive term sheet, direct contact with Financely is necessary to obtain a formal quote.