PROJECT FUNDING
PROJECT FUNDING
The New Horizon Bank PLC has the primary objective to expedite the funding of infrastructure and humanitarian projects that produce positive results for citizens and communities, that benefit from these projects, and that meet the additional criteria of sustainability and carbon-neutral outcomes.
One of the key financial mechanisms that we use relies on "structured trade programs". These funding programs usually trade new financial instruments at a fixed margin and the proceeds from these trades are applied to projects. There are strict criteria that need to be addressed both during the project initiation phase and during the project execution phase in order to ensure that each project meets it stated objectives and is completed in a timely and cost effective manner.
The key elements of the Project Funding process are described briefly below:
INITIATION PHASE
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This step is designed to clearly define the scope and the desired outcomes of each Project. An initial feasibility study is executed and the project is costed so that a Draft Master Project Plan can be completed. At the completion of this stage the New Horizon Bank PLC submits the project for approval, to the relevant regulatory authority.
TRADING PHASE
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Once approval for the project is obtained the "project principal" (usually a corporate entity) needs to raise the initial capital required to establish the "structured trade program". The KYC ("know your customer") documentation is completed and the "trade contract" negotiated with the relevant trade platform/group.
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Trading is usually contracted over a 12 month period and proceeds from the trades are distributed to each Project Holding Account on a monthly cycle.
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EXECUTION PHASE
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Each Project Holding Account is managed by the New Horizon Bank PLC to ensure that the funds are deployed to meet the project outcomes. The use of these proceeds from trading are monitored by the regulatory authority that originally approved the project to ensure that the project goals/outcomes are being met and that the funds are not being misappropriated.
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INVITATION ONLY
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Structured Trade Programs can only be commenced if the project and the "project principal" meet key per-requisites. The "project principal" is then invited to participate in the trade program by the trading group. Failure to complete a project or misappropriation of the proceeds, means that the project principal will not be invited to participate in a subsequent structured trade program.