Globenet Capital Group – Globenet Capital Group

Globenet Capital Group (GCG) specializes in finding projects that have the potential to create a positive economic impact and provide long-term benefits to those areas. Our team works with local governments, private sector businesses, investors and communities to develop feasible plans for the successful implementation of these ventures. We then use our contacts in both public and private sectors, as well as international funding sources, to secure the necessary financial resources for their completion.

In addition to helping bring new opportunities and investments into an area, GCG also assists in ensuring that projects are constructed according to established safety guidelines and regulations. We monitor projects from start to finish so that they meet all parameters and deliver optimal results within budget constraints.

A. FUNDING GOVERNMENT PROJECTS

Projects Budgetary Cost

GCG is committed to helping partners achieve their development aspirations by providing access to a wide range of funds. Through our funding, we are able to support major projects with no ceiling limit, starting at a minimum budget of Two (2) billion USD. This amount will be divided into two parts: 20% as a loan, which carries an interest rate of 3.5%, and the remaining 80% in the form of equity in the joint venture company (JVC). In the event that GCG needs to pay taxes to the government, the loan portion must be increased to cover this requirement.

Our commitment extends beyond providing financial resources; we also aim to ensure that our funding is used in an efficient and effective manner and contributes

Joint Venture Company

The Joint Venture Company (JVC) shall be created and managed in accordance with the laws of the country where it is located. The respective duties, rights and obligations of us and the client towards JVC shall be set out in an agreement between us and the client.

We shall ensure that all investments made by us are used for the development of projects as:

Having a fair appraisal of the respective partners’ contribution is essential for the success of any partnership. This may include financial contributions such as investing funds or capital, but also non-financial contributions including expertise and resources. All parties should agree on the value that each partner brings to the partnership, so that everyone is aware of their obligations and expectations.
The project is ambitious in scale, encompassing a range of technological advancements and applications.
The economic viability and financial performance of a project are essential for its success.
The total risk profile of the project should be carefully considered and weighed for its political, technical, financial and commercial aspects. These four components are essential to understand the potential risks associated with the investment.

The JVC shall ensure that the initial capital outlay is fully recovered before we reduce our majority stake. As part of this, financial statements should be presented to us on a quarterly basis for review and assessment.

Our equity share in the JVC will be determined by the level of investment made relative to other shareholders.

During the recovery period of invested funds:

GCG – 75%

The Client – 25%

During the post recovery period:

The Client – 60%

GCG – 40%

The JVC shall be led by a Board of Directors (the “Board”) composed of members drawn from the two partner companies. The Board’s main responsibilities are ensuring compliance with all legal and regulatory requirements, approving the JVC business plan, overseeing its execution, and making final decisions regarding material matters. The board shall approve all strategic plans and budgets.

The Required Financial Instrument

The GCG requires the Client to provide a financial instrument in order to initiate and maintain a contractual relationship.

- Government has to provide a legal guarantee of repayment called the ‘Sovereign Guarantee’
- For projects with a budget estimate exceeding Ten Billion USD, the Face Value of the instrument must be equal to the project budget. This is because such large-scale projects often require an equally large amount of investment for their successful completion.

GCG is committed to maintaining the highest standard of confidentiality when it comes to handling financial instruments provided by our clients. The client’s right to exclusive and confidential rights for transferring their financial instrument is a priority for us. We ensure that we provide secure and reliable services in order to protect our clients’ investments from any outside interference.

GCG will ensure that all relevant parties are provided with financial support in accordance with the stipulated terms and conditions of the contracts. This includes providing funds for any materials or services used to complete the project, as well as remuneration for contractors, manufacturers, consultants and employees.

Projects are funded in a variety of ways.

Upon review of the feasibility study and once we have determined the project is economically viable, we will submit a comprehensive technical and financial proposal to our local partner. This proposal will outline full funding for the project(s) from start to finish. Details on the proposed financing package, together with conditions for repayment, will be included in this document.

GCG has a robust and risk-free funding and implementation modality that covers 100% of the project’s costs. This includes financial resources for capital expenditures (CAPEX), operating expenses (OPEX) and working capital requirements (WCR). All associated risks are handled by GCG, making it an ideal solution for clients looking to finance development projects. Our financing is approved by our private Financial Associates, meaning clients can trust in the security of their investments.

Our comprehensive technology platform allows us to manage and track all stages of project implementation as well as monitor changes in funding needs over time. Through our innovative service model, we are able to provide efficient services and ensure successful completion of each project.

The JVC shall ascertain that all funds are administered in accordance with the project guidelines and applicable legal requirements. The JVC will also be responsible for making payments to contractors, manufacturers, suppliers and consultants in a timely manner. This is to ensure that the resources allocated for the project are properly utilized and no delays occur due to inadequate funding or lack of payment. Furthermore, any personnel hired by the company for the purpose of this project shall also be paid out of this account so as to avoid any disputes regarding the payment of wages.

The subsequent tranches of disbursements shall be made after satisfactory completion and certification of the works along with receipt of relevant invoices. The JVC will then certify the corresponding documents and approve payment to the contractor, supplier or service provider. It should be noted that all payments are subject to a full review by the Joint Venture Company’s financial officers before approval is given. In addition, any unanticipated costs incurred during the course of execution shall also be reviewed for approval prior to payment.

To ensure smooth progress in disbursement, it is important that contractors, suppliers and other service providers submit their invoices on time in accordance with agreed terms and conditions as specified in the contract.

The recovery of the invested funds is an important aspect to consider when deciding on a particular investment.

In order to ensure the recovery of funds invested by the company and its respective recovery period from projects, a comprehensive criteria is formulated. This criteria will be scrutinized and approved by the annual Joint Venture Corporation (JVC) shareholders assembly. The consolidated net earnings generated by the project(s) in question shall be used as a benchmark for determining eligibility for recoverable funds.

JVC’s Selections for Implementation

GCG is dedicated to ensuring that the selection process for manufacturers, contractors and consultants for the project is equitable and unbiased. To this end, we have developed an evaluation methodology which includes criteria such as technical performance, management capability and financial strength in order to ensure the successful completion of the project.

Engineering Subsidiary

To ensure the success of each project, we will entrust the Design, Specifications and Project Management to one of our subsidiaries. Our experienced team members are highly qualified in their respective fields and bring a wide range of expertise to every project. They work closely with the client to ensure that all specifications are met and that the timeline is adhered to. Furthermore, they are committed to providing quality assurance throughout the development process. We believe that assigning these responsibilities to our subsidiaries yields superior results, ensuring that projects are delivered on time and in accordance with standards set by our clients.

Required Guarantees

The guarantor of the company agrees to provide the following:

- During the project’s Implementation phase, a copy of the financial instrument must be held by both parties for the duration of the total implementation.
- GCG will ensure the recovery of funds by taking a first-rank mortgage over all assets of the project. The mortgage includes every asset, such as buildings and equipment used in the construction of the project. In addition, GCG also takes a first-rank mortgage on any related land plots to ensure full security for the invested funds.

Social Contribution (For Developing Countries)

The GCG Foundation was established in 2020, with the main goal of contributing to the development of needy communities in the country. The Foundation will use up to Three (3%) percent of annual project consolidated net earnings for activities that benefit local communities and help them improve their quality of life.

- The establishment of world-class vocational and training institutes is essential to sustain the project(s) activities. These institutes must have modern facilities, infrastructure, equipment, and qualified professionals who can provide quality training. The educational content should be regularly updated to meet current industry trends and best practices.
- The social fund is intended to provide financial assistance to those in need of educational, medical, and orphanage services. The primary focus of the fund is to help needy families access better education and healthcare, as well as providing adequate care for children who are left without parental support. It will also cover the costs associated with running an orphanage.
- In the case of social activities for uplifting needy communities, we offer a range of programs and initiatives that are tailored to meet their particular needs. Our priority is to ensure these communities benefit from our support in the most meaningful way possible.
- The Joint Venture Capital (JVC) option is an ideal financing solution for projects that require a large long-term investment. This solution enables our clients to access larger capital sums, while also increasing their return through the inclusion of private equity and venture capital funds.
- The JV option is a great way to secure capital for projects that may not have the required IRR or short recovery period of other investment options. This option allows investors to join forces with project owners, pooling their resources and sharing in the risks and rewards of the project.
- The Joint Venture (JV) will ensure that the project is maintained and kept up-to-date. A percentage of the net revenue generated from the project shall be allocated towards maintenance, upgrading and renewal activities throughout the life cycle of the project.
- The JV also provides the Parastatal company with an opportunity to develop its technical expertise by working in partnership with a renowned foreign player. This will enable the Company to gain far-reaching insights into the field of engineering, manufacturing and project execution which it can then use for other projects as well.
- The JV is highly selective when it comes to choosing suppliers, manufacturers, contractors, consultants and other service providers for the project. It selects those who meet its stringent criteria, which ensures that the project will remain reliable and efficient for years to come. The selection process also takes into account various aspects such as cost effectiveness