The Al Dar Capital Group actively collaborates with leading international, European and Arab investment banks in order to expand their funding sources and involve international financial institutions in the implementation of various investment projects.
One of the priorities of the Al Dar Capital Group is arranging financing for promising business projects of any type and degree of complexity, particularly in countries with emerging economies in the GCC, MENA, Asian and Latin American regions. The financing of such business projects is carried out, including through the provision of loans and leasing for companies and private entrepreneurs in these countries.
The loan and leasing departments of the Al Dar Capital Group are located in Zurich and Dubai, allowing them to effectively interact with European and international lending institutions, as well as with banks located in the Arabian Gulf region.
Loans earmarked for financing investment projects, are provided from the Al Dar Capital Group’s own resources and by attracting additional funds from international lending institutions and a wide range of private, corporate and institutional investors.
The main types of lending offered by the Al Dar Capital Group are:
In actualizing a funding program, experts from the Al Dar Capital Group’s loan department help in selecting a particular lending product, as well as in developing finance and credit arrangements. In case it is necessary to attract additional financial resources for a project’s implementation, we actively assist in promoting applications for credit from international lending institutions.
The Al Dar Capital Group provides borrowers the opportunity to attract credit resources under terms of project financing.
The main characteristics of lending for the purpose of financing projects:
- the source for loans’ repayment is the future cash flows that will be generated by the given financed project;
- the source for interest payments in the period prior to the project’s commencement and any revenues generally come from the project initiators’ own resources or proceeds from their core activities;
- as a security deposit for repayment of credit resources, the Al Dar Capital Group requires that the assets involved in the project be pledged to the Company as collateral during the financing period. As such, in funding projects on project financing terms, the Al Dar Capital Group does not require that all of the liabilities provided to the Al Dar Capital Group by the project initiator constitute tangible assets.
The main sectors of the economy that are funded through such project financing instruments:
- industry (oil and gas sector, energy, mining, metallurgical, chemical, light, food production, etc.);
- Infrastructure projects;
- real estate oriented project;
- companies operating in the service sector.
The Al Dar Capital Group arranges provision of the following basic types of investment loans:
- for the construction of new facilities and production capacities;
- for the technical re-equipment, expansion and reconstruction of existing enterprises and organizations.
Syndicated lending is carried out in order to attract significant funds for the implementation of global long-term investment projects that are relevant to the real sector of the economy (the most attractive spheres for investment are international oil and gas projects).
The Al Dar Capital Group provides the following services with respect to syndicated loans organization:
- performing work to identify and attract major lenders;
- working out the legal framework;
- organizing cash flows;
- ensuring smooth lending;
- monitoring the targeted use of funds.
The contractual relationship between parties to a syndicated loan is arranged through:
- an investment lending agreement between the Al Dar Capital Group and the borrower;
- loan agreements between the Al Dar Capital Group and other lenders. These treaties outline the property rights of lenders to the right of recovery according to the lending agreement between the Al Dar Capital Group and the borrower, to the extent of the funds invested by the lender, but not earlier than the term required under the loan agreement between the Al Dar Capital Group and the borrower.
The organization of consortium lending is carried out in order to to attract funds for implementing what are generally significant long-term investment projects. The most attractive options for organizing consortium lending with the participation of major lenders are investment projects aimed at implementing international oil, gas and other projects related to the real sector of the economy.
The contractual relationship between parties to consortium loans is arranged through:
- an agreement between the lenders about extending loan on a consortium basis and granting each participating borrower a certain amount of the approved loan in order that the lender-approved investment project may be implemented;
- loan agreements between the borrower and each party to the consortium.
As part of the financing provided for investment projects, the Al Dar Capital Group offers a full range of services according to a financial lease arrangement (leasing).
The realization of leasing projects is carried out by the leasing department of the Al Dar Capital Group, which implements its activities in the following areas:
- financing of capital investments (financial leasing);
- financing of current activities (redemption leasing or lease-back);
- consulting/support for leasing operations.
The Al Dar Capital Group offers the following types of leasing products:
The Al Dar Capital Group specializes in the following types of equipment provided through leasing:
- oil and gas extraction and processing equipment;
- mining equipment and machinery;
- power equipment;
- transport vehicles;
- industrial properties;
- construction and specialized equipment;
- engineering and metalworking equipment.
Leasing of low and medium complexity
Leasing arrangements of low/medium complexity involve transactions whereby property tenure transferred through a leasing arrangement does not require installation and must be supplied within a three-month period. For property that requires a straightforward installation, it must be supplied within a period of up to six months.
The subject of the leasing of low/medium level of complexity may be liquid (non-unique) assets.
Leasing of high complexity
Leasing arrangements of high complexity involve the transfer of the leased property (or equipment) with a lengthy period for its supply, installation and putting into operation (up to twelve months).
The subject of leasing arrangements with a high level of complexity is usually limited to production equipment with limited liquidity (having a tight secondary market). It also pertains to cases where the cost of assembling/disassembling equipment represents a significant portion of its value.
Investment leasing involves the creation of complex infrastructure and production facilities with a lengthy investment period, or else reconstruction works within the framework of the leasing project.
Investment leasing includes the establishment (or reconstruction) of industrial property that is necessary for the operation of new equipment. Thus, such a leasing arrangement entails the transfer of a ready-for-use (turnkey) production facility, inclusive of both the production facilities and real estate.
Real estate leasing
Real estate leasing involves the purchase and transfer of leasing properties that are used for business purposes and are related to non-moveable property in accordance with applicable law.
The subject of real estate leasing may pertain to property that is earth-ground (such as buildings and facilities), as well as aircrafts, marine and inland waterway vessels subject to state registration.