Liquidity Maintaining Loan (Bridge Loan)

Target group

MLC, MFC, MLA, CU and commercial banks, included in the 1st or 2nd category according to the evaluation of MLC “Frontiers”.
Purpose

Provision of a short-term loan to cover gaps in the cash flow of FLI, related to the performance of current liabilities (with the exception of loans from Frontiers).
Loan size

Not more than 20% of total current financial liabilities of FLI.
Loan term

Up to 3 months
Interest rate

Defined by the Credit Committee, depending on the credit history of the FLI, the pricing policy of MLC “Frontiers” and the current financial market situation.
Provision
  • For FLI of the 1st category by Frontiers’ assessment:
    – loan portfolio of the FLI covering 130% of the loan size;
    – in some cases loans can be issued without provision.
  • For FLI of the 2nd category by Frontiers’ assessment, at least two of following types of provision:
    – loan portfolio of the FLI covering 130% of the loan size;
    – guarantee(s) of key persons of FLI and/or founder(s);
    – assets owned by the FLI (office, real/personal estate, etc.);
    – provision in terms of the FLI and/or the company owned by the founders;
    – guarantees of the third parties.
  • In some cases by the decision of Credit Committee of MLC “Frontiers” a real estate belonging to key persons and/or the founder(s) of FLI can act as provision on a loan line.
Loan issuance procedure

One tranche within 3 (three) days after signing a loan agreement.
Payment for consideration of the application and issuance of a loan

1 % of the loan amount
Payment for early repayment
  • In case of prior written notice not less than in 30 days prior to date of early repayment – 0%;
  • Without prior written notice not less than in 30 days prior to date of early repayment – 2% of ahead of schedule repayable sum;
  • In exceptional cases the Credit Committee of MLC “Frontiers” can make the decision on not collection of a payment for early repayment without prior written notice.
Repayment schedule

Defined by the Credit Committee of MLC “Frontiers” individually on the basis of cash flows of FLI.
Covenants
  • The coefficient of adequacy of the capital of FLI has to make not less than 15%;
  • Value of an indicator “A portfolio at risk more than 30 days + the restructured loans” shouldn’t exceed 5% + 3%;
Time for consideration of an application

No more than 3 (three) working days.