Guide on Requirements For BDO Project Finance Loan Application
REQUIREMENTS FOR BDO PROJECT FINANCE LOAN – Here is a guide on the documents needed in applying for this BDO Unibank business loan offer.
A lot of people preferred to put their money in a business rather than saving it where it may earn very little interest. In a business, there is a chance that it will grow and as well as you capital.
However, truths be told that there is also a huge risk. Thus, it is very important to plan and study your chosen business very well to decrease the chance of losses and increase the chance of success.
With regards to resources, there are banks that you may turn to. One of these is BDO Unibank.
One of the business loan offers of BDO is the Project Finance Loan. The repayment under this offer depends on the business cash flow.
List of Requirements for BDO Project Finance Loan
- Feasibility study and/or a detailed information memorandum, prepared by a qualified party. The study should include the project description, location, legal status, ownership, and background and status of key elements of the project structure, such as agreements, licenses, local partner participation and financing.
- All contracts necessary for the project to be built and operated.
- A breakdown of anticipated project costs through commissioning, including interest during construction and working capital requirements, by major cost category and country of origin. These include:
- Any “soft costs” such as development costs, development fees, owner’s contingencies and other similar items.
- Proposed coverage for interest during construction and the method of calculation
- A summary of the anticipated project financing plan and security package, including the proposed source, amount, currency and terms of the debt and equity investments; the sources of finance in the event of project cost overruns; and description of escrow accounts.
- Information on the terms, security requirements, and status of financing commitments of other lenders to the project, if applicable, should be provided. All other sources approached for financing must be disclosed.
- Projected annual financial statements, including a sensitivity analysis for not only the expected scenario, but pessimistic and optimistic cases as well.
- Assumptions for the financial projections
- Market information to include ten years of historical price and volume data; present and projected capacity of industry; product demand forecast with assumptions; description of competition and projected market share of the project as compared to the shares of the competition; identity and location of customers; and marketing and distribution strategy.
- A description of the principal risks and benefits of the project to the sponsors, lenders, and host government.
- A description of the types of insurance coverage to be purchased for both the pre-completion and post-completion phases of the project.
- Information on infrastructure required for the project to operate, specifically information pertaining to the timing, status and developmental plans.
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