Boutique Financial Advisor
PFS Finance (USA), LLC provides access to medium- to long-term funding through direct loans and loan guaranties to eligible investment projects in developing countries and emerging markets.
Bridge to private capital, helping businesses gain footholds in emerging markets, catalyzing revenues, jobs and growth opportunities both at home and abroad.
Financing trade and investments. Floating or fixed rate loan facilities extended to importers of capital goods and services.
PFS Finance operates under agreement with leading international Banks as their "originator" to facilitate export credit and structured finance transactions, and provides complementary value-added operations from financial due diligence to operational follow-up, until full maturity of the facility.
- Goods must be shipped from the country of origin to the Buyer
- Either produced/originated in the country of origin or meet foreign content requirements
- Liens on the equipment being financed
- First repayment typically due 6 months after the "Starting Point of Credit" (e.g. mean shipment, completion of construction or commissioning date)
- In equal semi-annual / quarterly instalments
Cost of Financing
Based on an assessment of the risks. For Equipment Finance, rate is:
- LIBOR rate
- Risk Spread
- Other costs include an upfront facility fee, and commitment fees
OPIC Financing: U.S. Connection
- OPIC provides debt financing, political risk insurance and support for private equity investment funds.
- OPIC requires that its projects have a meaningful connection to the U.S. private sector.
- U.S. involvement in the project company must be in an amount that is at least equivalent to 25% of the project company's equity. This may be satisfied with equity investment, long-term debt investment, other U.S. contracts (such as construction, operating, maintenance or service contracts, off-take purchase arrangements and franchises) or by any combination of these.
- OPIC can provide direct loans from $100,000 to $250 million
- Loan based on "Total Project Costs"
- Hard costs: buildings, land, equipment
- Soft costs: legal costs, design and architectural costs, financing costs
- Determine an appropriate leverage for the deal (OPIC max is 75% of TPC)
- Grace period on principal during start-up
- Repayment in equal quarterly or semi-annual instalments
OPIC systematically monitors investor compliance with US economic, environmental, worker rights and corrupt practices representations through questionnaires, investor reporting and site visits
Cost of Financing
Based on an assessment of the risks. For OPIC, rate is:
- U.S. Treasury rate (cost of funds)
- Risk spread
- Other costs include an upfront facility fee, commitment fees, and an annual maintenance fee
- Outside legal counsel and/or the services of experts or consultants
Political Risk Insurance
- OPIC insurance provides innovative, comprehensive, and cost-effective risk-mitigation products to cover losses to tangible assets, investment value, and earnings that result from political perils.
- Political risk insurance is available to U.S. investors, lenders, contractors, exporters, and NGOs for investments in 150 developing countries, including high-risk countries such as the Democratic Republic of Congo, Iraq, Afghanistan, and Pakistan.
- In response to the shortfall of private equity capital in developing countries, OPIC provides support for the creation of privately-owned and managed investment funds.
- Funds make direct equity and equity-related investments in new, expanding or privatizing emerging market companies.
- OPIC has committed $4.2 billion to support the creation of more than 46 private equity funds in emerging markets since 1987.
- These funds in turn have invested $5.6 billion in more than 570 privately-owned and managed companies across 65 countries.