Development-Backed Finance and Project Finance

|> CASSONA monitors various countries and overseas markets for international project opportunities such as tender/bids for infrastructure projects. Foreign Principals can take advantage of these opportunities in various development projects in infrastructure or construction projects and other similar initiatives in emerging markets with the full support of CASSONA and U.S. ECAs;

|> For these types of financing, the foreign Principal can bid for the project with CASSONA as a partner. CASSONA would obtain the necessary funding for the project, which in most cases, would be Government sponsored;

|> The most important requirement for funding projects on a long-term basis is a credit-worthy off-taker or credit worthy sponsor or both;

|> Further, CASSONA be allowed to choose a US engineering, procurement and construction company (EPC) and other suppliers of goods and professional services from the US;

|> CASSONA, as part of its project financing may organize trade missions through the US local Consulate in the foreign buyer’s country for purposes of export market development;

|> CASSONA would also arrange for feasibility and market studies to support projects at the foreign principal’s expense;

Trade-Backed Finance

|> The most common difficulty experienced by foreign buyers is ability to pay. As with all export trades, ability to pay and payment methods are important to the consummation of the transaction(s);

|> Today, even the most credit-worthy export trading parties experience financial limitation with established commercial banks for one reason or the other. Many foreign buyers fall short because of past credit histories or lack thereof or are simply “cash strapped” and unable to show their U.S. suppliers that they have the ability to pay in a form acceptable to the US supplier;

|> In these types of cases, CASSONA can provide alternative financing through ECAs as will be further discussed below under ECA Financing. CASSONA would step into the shoes of the foreign buyer to show ability to pay and would ensure that the goods shipped remain as collateral for any funding alternative. In special cases, CASSONA may actually extend trade financing to the buyer who pays as the goods are sold provided the Buyer has shown good faith by paying for past goods received on credit or their bank can vouch for them as an acceptable credit risk.

ECA Financing – Generally

|> The Export-Import Bank of the United States (Ex-Im Bank) is the official export credit agency (ECA) of the United States and provides financing to foreign buyers who want to purchase U.S. goods and services;

|> Financing packages can be short-term, medium-term, or long-term. The focus of this Brochure is short and medium term loans. If you or your company is interested in long-term loans (7 years to 14 years), such as project financing, structured financing and similar financing for infrastructure projects, please contact us and we would provide a custom description of the process to you;

|> Ex-Im Bank does not compete with private sector lenders but instead provides financing to those who for one reason or the other cannot find commercial banks that are willing to finance their purchase of goods;

|> Ex-Im Bank can finance cross-border trades that Commercial lenders are reluctant to due to risk of non-payment or lack of collateral to cover the loan amount. If you are a foreign buyer and have already identified a U.S. product but lack funding, we can help.

ECA Financing – Requirements

|> Established business (with at least three years history of existence and business activity);

|> You must deal in goods of the type requested in your country or similar goods for the period of your existence (The goods can be consumables like food products (rice or wheat), hardware and tools, electronics, construction equipment, electrical equipment. These are only examples. It can be anything as long as it is made in the US);

|> The goods you require must be manufactured in the US;

|> You must be able to contribute 15% of the product cost. Ex-Im bank would finance 85% of the product cost;

|> All goods purchased through U.S. ECA funds must be shipped with a U.S. flag-ship

Funding of Purchase by ECA

|> Note that in all financing, Ex-Im Bank funds only 85% of the purchase price;

|> Example: if you buy a product from the US for a cost of $100,000, Ex-Im Bank would finance 85% of the cost or $85,000;

|> Ex-Im Bank pays the exporter (this may be CASSONA) directly, it also pays the shipper directly as well as any other related service, such as legal or accounting or consulting services, as long as the provider of such service is American and resides in the US;

|> In each case however, the foreign buyer is responsible for payment of 15% of the cost of either the goods or the related services;

|> Short and medium term loans can be as small as $100,000 and as high as $9,999,999. It can be a one-time financing or it can be continuous.