Maximizing the effectiveness of existing financial instruments
The Fund’s current financial instruments include grants and concessional loans. In addition to the additional financial instruments described throughout this document, the Fund can also maximize the effectiveness of its existing financial instruments, especially grants. Grants need not necessarily be a one-time disbursement with no expectation of repayment; grants can also be used so that they are “recycled” and thus greatly increase their leverage and catalytic effect. Recycling represents the ability to be repaid and then redeploy the funding for a future, separate use. In this form of use, one grant may be deployed to bring many successive projects or programmes to fruition. The Fund would also retain the option to use grants as a one-time disbursement.
A central feature of traditional grants is that there is no expectation of repayment for grants as traditionally defined. This has the potential of creating distorting subsidies and material moral hazard in the private sector. These risks can be greatly mitigated by extending Smart Grants that have to be repaid under certain conditions.
The risks and potential downsides of this approach to grants are minimal. This is a “no regret” option that enables the Fund to work through existing Board-approved arrangements through intermediaries and implementing entities and gain the benefits of substantially higher leverage and catalytic effect through recycling grants for future deployment, all the while mitigating against the risk of subsidizing the intermediary, implementing entity and/or executing entity that could reasonably occur under other grant-giving arrangements.
The Use of grants and concessional loans. Greater flexibility to maximize the effective use of grants would be introduced, in the sense outlined in
aforementioned. The additional flexibility to use grants would enable the Fund to deploy guarantees and equity through intermediaries and implementing entities such that the intermediaries return the grant funds to the Fund as and when the associated guarantees expire unused and the equity is repaid to the intermediary.
Fund’s initial operations before considering the introduction of further instruments. Introduction of insurance and direct project investment (if appropriate).
Following an internal review of the Fund’s financial products, and if it is deemed advisable to proceed with the introduction of insurance and the ability to invest directly in projects, this would then occur.
In the Light of the above, Martin Burn (IOM) Limited has piloted the affairs of many companies by providing a liquid Loans capital and as well, anchored in a US$ 57 million commitment by the Government of Denmark—that supports small and medium clean energy and energy efficiency projects in Africa.
The first window of the requisitions provides project preparation grants for private project developers/promoters for renewable energy and energy efficiency projects with total capital investment needs in the range of US$ 30- 75 million. The other window provides seed/growth capital (equity) for SMEs with renewable energy and energy efficiency projects requiring total investments of US$ 10-30 million.
Your business, your company can be the next in line to witness the outrageous funding from Martin Burns (IOM) Limited. For more details, visit our website at: www.mbiomfinance.com and use the contact menu. We are always in alert to discuss the business of Loans, Funding, BGs, SBLCs, with you.
The Fund’s current financial instruments include grants and concessional loans. In addition to the additional financial instruments described throughout this document, the Fund can also maximize the effectiveness of its existing financial instruments, especially grants. Grants need not necessarily be a one-time disbursement with no expectation of repayment; grants can also be used so that they are “recycled” and thus greatly increase their leverage and catalytic effect. Recycling represents the ability to be repaid and then redeploy the funding for a future, separate use. In this form of use, one grant may be deployed to bring many successive projects or programmes to fruition. The Fund would also retain the option to use grants as a one-time disbursement.
A central feature of traditional grants is that there is no expectation of repayment for grants as traditionally defined. This has the potential of creating distorting subsidies and material moral hazard in the private sector. These risks can be greatly mitigated by extending Smart Grants that have to be repaid under certain conditions.
The risks and potential downsides of this approach to grants are minimal. This is a “no regret” option that enables the Fund to work through existing Board-approved arrangements through intermediaries and implementing entities and gain the benefits of substantially higher leverage and catalytic effect through recycling grants for future deployment, all the while mitigating against the risk of subsidizing the intermediary, implementing entity and/or executing entity that could reasonably occur under other grant-giving arrangements.
The Use of grants and concessional loans. Greater flexibility to maximize the effective use of grants would be introduced, in the sense outlined in
aforementioned. The additional flexibility to use grants would enable the Fund to deploy guarantees and equity through intermediaries and implementing entities such that the intermediaries return the grant funds to the Fund as and when the associated guarantees expire unused and the equity is repaid to the intermediary.
Fund’s initial operations before considering the introduction of further instruments. Introduction of insurance and direct project investment (if appropriate).
Following an internal review of the Fund’s financial products, and if it is deemed advisable to proceed with the introduction of insurance and the ability to invest directly in projects, this would then occur.
In the Light of the above, Martin Burn (IOM) Limited has piloted the affairs of many companies by providing a liquid Loans capital and as well, anchored in a US$ 57 million commitment by the Government of Denmark—that supports small and medium clean energy and energy efficiency projects in Africa.
The first window of the requisitions provides project preparation grants for private project developers/promoters for renewable energy and energy efficiency projects with total capital investment needs in the range of US$ 30- 75 million. The other window provides seed/growth capital (equity) for SMEs with renewable energy and energy efficiency projects requiring total investments of US$ 10-30 million.
Your business, your company can be the next in line to witness the outrageous funding from Martin Burns (IOM) Limited. For more details, visit our website at: www.mbiomfinance.com and use the contact menu. We are always in alert to discuss the business of Loans, Funding, BGs, SBLCs, with you.
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