How IIB-DG projects are financed:
IIB-DG project cycle consists of the following stages :
Typically, IIB-DG management approves the project concept and overall structure, including the proposed financing structure and supporting obligations. At this stage, IIB-DGD and the client usually sign an MoU which outlines the responsibilities.
Once the basic business deal (including a signed term sheet) has been negotiated and due diligence has been substantially completed, the project is submitted for Final Review by IIB-DG management.
IIB-DG President and operations team present the project to the Board of Directors for approval unless Board approval has been delegated to management.
IIB-DG and the client sign the deal and it becomes legally binding.
Once repayment conditions are agreed upon and IIB-DG’s conditions are met, the funds are transferred from the IIB-DG’s account to the client’s account.
The client repays the loan amount to IIB-DG under an agreed schedule.
Sale of equity
Preparation: In line with the contractually agreed exit process and timing either:
- the investee company or IIB-DG appoints a sell side advisor and organises a competitive process IIB-DG’s stake in the business, or
- the investee company is prepared for an IPO, or
- in case of put/call arrangement the put option value is determined
- Review: Once the exit parameters (including valuation) have been substantially established, the project receives a Final Review by IIB-DG management.
- Exit: legally binding agreements are signed and the transaction affected subject to all necessary external approvals.
The loan has been fully repaid and/or the IIB-DG’s equity investment divested.