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We raise capital through financial instrument ,SBLC, bond, etc. issuances in international capital markets to fund infrastructure projects and maintain our financial strength. Our high credit rating is essential for maintaining our ability to access markets globally and to maintain our low cost of funding from 1% to 1.5%, non- recourse and 5Year Grace period. Up to 30 Year repayment period. No upfront fees required.
Under our funding program, IIB to issue bonds, or any other financial instruments in a variety of markets, formats, and currencies—including global benchmarks bonds, green and social bonds, ,private placements, and discount notes. Local-currency bonds to develop domestic capital markets and facilitate local-currency lending.
Besides raising capital through financial instruments, bond issuance, we invest our liquid assets globally and manage them versus recognized industry benchmarks. We aim to outperform those targets while preserving capital and ensuring funds are available as needed for our private sector investments in developing countries.
We also manage currency and interest rate risks of assets and liabilities on IIB-DG’s funded balance sheet within prudent risk limits. This allows us to tailor risk management and loan products to the needs of IIB-DG’s clients while hedging the resulting market risks.
The IIB DEVELOPMENT GROUP is not a bank and we do not “lend out” money – for the simple reason that we do not want to put governments, Treasury, the Central / Reserve Bank and/or private companies under even more pressure with them then having to pay such money back and at a premium interest rate.
IIB DEVELOPMENT GROUP has a wide range of funding sources from which we can draw:
- a) We have our own Investment Portfolio and Readily Available Cash;
- b) We hold significant equity and hard assets, such as gold and diamonds;
- c) We own significant stock on the Stock Markets;
- d) We have a pool of Private Investors and Financiers;
- e) We have the co-operation of a number of large Hedge Funds;
- f) We work with five of the top 25 Banks in the World;
- g) We have On- and Off-Balance Sheet Trust Fund of which we can access to use towards the Development / Implementation of Projects.
In this regard we have designed a number of proposals to help stimulate the Economies of Developing Countries and whereby The IIB DEVELOPMENT GROUP will:
- a) Help pay / service its current International Debt;
- b) Create sustainable Business and Industry;
- c) Build houses for the civilian population;
- d) Develop strategic Agriculture Hubs all over Africa;
- e) Roll-out strategic projects in Energy, Fishing, Education etc.
- f) Create thousands of new jobs;
- g) Skills Development and Training
- h) Help modernize the local economies to grow and thrive.
NONE of the above is good options for Developing Countries’ of whose Economies are struggling / sluggish. Adding more DEBT will just exasperate the problem and turn it into a crisis. Selling off valuable assets to such as mineral reserves to Greedy Foreign Corporations is also not the solution.
The IIB DEVELOPMENT GROUP neither supports nor do we follow those above-mentioned Funding – and for the simple reason that we do not want to put the Government, Treasury, the Central / Reserve Bank / Private Sector under even more pressure with them then having to pay such money back and at a premium interest rate.
IMPORTANT: In relation to the Commercial Bank Guarantee, The IIB DEVELOPMENT GROUP will undertake and contractually bind ourselves as follows:
- a) Never trade the Bank Guarantee;
- b) Never sell the Bank Guarantee;
- c) Never cash in on the Bank Guarantee;
- d) The physical money, as reflected on the Bank Guarantee, never has to leave the Bank that issues the Guarantee nor the country;
- e) The IIB DEVELOPMENT GROUP has no access to the Bank Guarantee and cannot use it – as it is placed with the Fiduciary Bank and as overseen by an independent Transaction Manager;
- f) The Bank Guarantee will be returned untouched and in same condition immediately once building/implementation of project has been completed (one to three years depending on project type).
The Commercial Bank Guarantee is merely to Mitigate the Risk of the IIB DEVELOPMENT GROUP. It has a future Maturity / Expiry Date (e.g., 3 years from date of issue) which effectively means that nobody can use / draw against it before then – rendering it basically useless and dormant. But it does act as an overall SAFEGUARD so as to ensure that the Investment / Funding of The IIB DEVELOPMENT GROUP is not lost through Theft and/or Corruption and that it is used ONLY towards the agreed project. The IIB DEVELOPMENT GROUP can and will only lay claim to the Guarantee (and then only for that portion of the IIB DEVELOPMENT GROUP investment funds already paid over to the project) through a formal Judicial Process as per Application in a Court of Law and/or through a formal Arbitration Process.
The said Bank Guarantee must be an industry standard, Commercial Bank Guarantee of pre-agreed standard international Verbiage (ICC 758 URDG) / MTN / LTN and must reflect a value as pre-agreed between the Parties. The Bank Guarantee, besides being to MITIGATE RISK for The IIB DEVELOPMENT GROUP, also creates and environment of Transparency and Accountability and acts as mechanism through which The IIB DEVELOPMENT GROUP will then release our Funds towards the approved Project(s).
The Bank Guarantee is, however, very important to the above process as it gives COMFORT to the IIB DEVELOPMENT GROUP stakeholders that our monies are protected at all times; and furthermore, that it creates an environment of Transparency and Accountability.
