Equilibrium’s core business is Business Development and this includes developing funding solutions to meet the requirements of customers around the globe. Our Finance Division represents a large syndicated facility of private investors backed by international bankers of high reputation who are interested in assisting both Government and Corporate Developers to finance equipment and infrastructure programmes. The Facility is a US Dollar denominated private capital funding facility. It focuses on providing debt, equity and hybrid finance, risk management, project management, advisory services and other resource mobilization towards project initiatives that promote the economic and social welfare of nations.

 

Equilibrium is associated with a USD/Euro denominated Syndicated fund for which we are the sole channel to market in Australia and our partner is the sole channel internationally. It has an annual capacity of USD 15 billion for funding projects, principally infrastructure projects in emerging markets. The projects can be Public, Private or PPP. Currently there is no minimum drawdown however project values in excess of USD/Euro 100 million with no fixed top end, working on annual capacity, are preferred.

 

Terms are from 1 year to 10 years with rollover capabilities. If the investment is 12-24 months a zero coupon bond is required, if longer then a coupon is required. (A zero-coupon bond (also called a discount bond or deep discount bond) is a bond bought at a price lower than its face value, with the face value repaid at the time of maturity. It does not make periodic interest payments, or have so-called "coupons," hence the term.) Rates are not quoted at any time until the group agrees that it will fund, and the solution is crafted for the tranche. The group is committed however to competitive cost of funds. This does not mean it will negotiate rates, only that the offer and terms will be competitive in the area.

 

If the project has Sovereign support, the fund seeks to find a solution that will not adversely impair the country's balance sheet. If the investment is an equity investment, the equity noted must be not less than the equity part of the other parties and no two parties must be related. That is, if there are two shareholders that are related parties, then the fund will require equity equal to the joint holding. This will be in the shareholder agreement. If there is no sovereign cover, then a Bank Guarantee/SBLC for 50% or higher must be available from a quality international banker.

 

The Facility provides medium to long term funding in eligible investment projects, thereby complementing large scale capital intensive investment initiatives whether they originate from:

·         Public sector initiatives.

·         Public Private Partnership initiatives .

·         Social infrastructure .

·         Economic infrastructure.

·         Private sector initiatives.

·         Mature markets.

·         Emerging markets

 

The Facility has a mandate that provides for 80% of the annual facility being directed to emerging markets for infrastructure projects in Health, Education and Welfare (human and economic). These types of projects include, but are not limited to: