DEPOSIT MATCHING FUNDS
DMF - Transactions are designed to assist clients secure large scale finance from their own bankers. This facility is especially helpful for businesses who can obtain funds locally subject only to adequate security in the form of collateral being deposited at their bank. Under the terms and conditions of a DMF arrangement, MANCALA GROUP can arrange for the deposit of Bank funds at the client’s lending bank which can serve as cash collateral which will allow a loan to be made. Obviously, the lending bank , the client and the owner of the Cash Collateral must be fully secured to enable a successful financing operation to conclude. To allow for the complete security of the transaction, MANCALA GROUP prepares a detailed proposal and presentation to the client’s landing bank. The proposal will detail the amount of the deposit to be deposited, the agreed disbursement and details of the recommended leveraged investment operation that will ensure that the lending bank will have the
means to lend and the client to be able to service the debt over the medium term. This allows theunderlying project to manage most of its short to medium tern repayment burden.
The main qualifying conditions for a DMF transactions is as below:
The Client must have a project that has been reviewed by his lending bank and accepted for financing subject to adequate cash collateral being deposited at the lending bank.
Mancala Group are unable to commence a DMF application until this basic initial condition has been met. The reason for this is that Mancala Group and its Collateral providers do not want to get involved in the validity or the feasibility of the client’s project and we can only get involved when the necessary Due Diligence on the project has already been undertaken by the lending bank. Once the lending bank has accepted the proposal, then Mancala Group will arrange for the syndicated funds to be made available and inform the lending bank with all the necessary due diligence to allow them to accept the funds and complete the transaction.
Fee For Service
The initial fee for service for preparing the bank ready proposal is €7,000 and where a client requests Mancala Group to present the proposal to the lending bank, additional expenses will be added to cover cost of travel, per diem time, and accommodation.
On successful completion of the transaction a success fee equal to 1% of the transaction value will be payable to Mancala Group