Sunrise Investment Corporation

PROJECT CLASSIFICATION

Loan funding for projects is classified as follows:

New project:

- The project owner completed the project legal records approved by the authorized agencies, had a site clearance without dispute, and fully paid the land lease (or purchasing land). It is a shovel-ready project or project under construction with project owner's equity. The project owner uses loan funding to carry out the project, pay off the project's outstanding balance, and take back the project ownership documents if the project is mortgaged at a bank.

- The project owner uses loan funding to supplement capital sources, enhance liquidity, and expand business networks (applicable to the project owner who is a financial institution such as a commercial bank, insurance enterprise, and securities company that needs loan funding of 50 million USD or more with a maximum loan funding term of 05 years).

- The project owner uses loan funding to execute a business merger and acquisition transaction. The involved parties signed an agreement in principle for the transaction.

Refinancing project:

The project owner has operated commercially to generate revenue and mortgaged the project at a bank. The project owner uses loan funding to pay off the project's outstanding balance and take back the project ownership documents from this bank.

FEATURES

- Loan funding of up to 70% of the new project’s total capital investment of USD 30 million or more. The rest of the 30% is the project owner’s equity. 

- Loan funding of up to 85% of the refinancing project’s outstanding balance of USD 30 million or more. The rest of the 15% is the project owner’s equity.

- Loan interest rate from 3%/year.

- No requirement for a loan funding guarantee from the Government or banks.

- The project owner does not need to mortgage the project for loan funding.

- The project owner has full of ownership, operation and management of the project.

- The project owner repays loan funding (principal and interest) to the investment fund according to the project’s gradually decreasing balance.

- The project owner does not pay any upfront fees.

- The one-time loan funding fee is 4% of the project loan funding.

- The one-time loan funding security fee is 0.25% of the project loan funding.

- The maximum loan funding term is to 15 years.

LOAN FUNDING PROCESS

The project owner refers to this SUMMARY and provides all copies of the project legal records approved by the authorized agencies according to the requirements below for Sunrise Investment Corporation (hereinafter referred to as the consultant) to evaluate the project’s feasibility.

These copies are in English and certified (no need for certification of requirements 6., 7., 8., 9., and 10.) by a notary public or administrative agency including:

1. Company registration certificate or Certificate of incorporation.

2. Company charter or Articles of incorporation.

3. Decision on approval of the project investment policy or Investment registration certificate.

4. A copy of a valid passport or identity card of the legal representative (Chairman or CEO) if it is a private enterprise or a one-member limited liability company (certify only if using a passport copy having the English language).

5. Copies of valid passports or identity cards of the legal representative (Chairman or CEO) and each board member if it is a joint name partnership, joint venture partnership, general partnership, multi-member limited liability company, joint-stock company, and corporation (certify only if using passport copies having the English language).

6. Prepare letter of the project loan funding request. The consultant provides this letter template.

7. Fill out the project loan funding application. The consultant provides this form.

8. Project summary in 02 pages: Half of the first page introduces the company overview. The remaining is the project brief with the project coordinates to view the outline from a distance.

9. Loan funding withdrawal plan and loan funding repayment plan.

10. A five-year business plan for the project.

11. The company's financial statements in the last three years have been audited (or reviewed) to international standards by an international auditor with branches in the country like Ernst & Young, PricewaterhouseCoopers, KPMG, and Deloitte.

12. The refinancing project’s financial statements in the last three years (or from the commercial operation date to the latest year) have been audited (or reviewed) by an international auditor.

13. Signed loan agreement(s) between the project owner and the bank(s) in the project owner’s country and abroad.

14. Signed bond agreement(s) between the project owner and the bondholder(s) in the project owner’s country and abroad.

15. A written letter from the tax department confirming whether the project owner has overdue taxes.

16. Bank documents confirming whether the project owner has overdue debts.

17. A written letter from the bank to confirm the project owner's equity of a minimum of at least 30% of the new project's total capital investment or a minimum of at least 15% of the refinancing project's outstanding balance. This amount stays in a bank account until the consultant notifies the project owner of the approval or refusal of the loan funding.

18. Opening of the project account at one of the global banks.

After thoroughly evaluating the project's feasibility, the project owner and the consultant sign a consulting agreement.

TOTAL LOAN FUNDING COST

As per the general interpretation as follows:

The project loan funding: USD 30,000,000.

The interest rate: 3%/year.

The loan funding term: 10 years.

(1) The project owner repays the investment fund for the project loan funding (principal and interest) according to the gradually decreasing balance of the project in 10 years: USD 34,760,000.

(2) The project owner pays the consultant the one-time loan funding fee of 4% of the project loan funding: USD 1,200,000 (USD 30,000,000 x 4%).

(3) The project owner pays the insurance company the one-time loan funding security fee of 0.25% of the project loan funding: USD 75,000 (USD 30,000,000 x 0.25%).

The project's total loan funding cost includes the loan funding repayment, loan funding fee, and loan funding security fee for 10 years:

USD 36,035,000 [(1) USD 34,760,000 + (2) USD 1,200,000 + (3) USD 75,000] in which interest and fees for 10 years are: USD 6,035,000 (the project total loan funding cost of USD 36,035,000 - the project loan funding: USD 30,000,000).

BENEFITS

Comparing the interest rate of 3%/year and features of the investment fund with the long-term lending rate of domestic banks (it is about 7%/year in the US), the investment fund loan funding practically supports project owners who need that loan funding to expand the production, business, and services activities or reduce the total borrowing costs to maximize company profits.

NOTE:

- The terms "the project owner" and "the company" are synonymous in this SUMMARY.

- Please visit www.binhminhsic.com for the updated details.