Wholesale Loan

Target group

MLC, MFC, MLA, CU and commercial banks
Loan purpose:

Increasing of loan portfolio of Finance Lending Institutions (FLIs)
Minimum loan size:

1 (one) million KGS
Maximum credit exposure for one client
  • For FLI of the 1st category by Frontiers’ assessment – up to 150% of the own equity of the FLI;
  • For FLI of the 2nd category by Frontiers’ assessment – up to 100% of the own equity of the FLI;
  • For FLI of the 3rd category by Frontiers’ assessment – up to 50% of the own equity of the FLI.

Regardless the category of the borrower, the total volume of debt on the main sum of the obtained loans cannot exceed 20% of the own equity of Frontiers.
Loan term
  • Up to 36 months.
  • Not more than 24 months for the third category FLIs
Interest rate
  • 16-17% annually on standard conditions;
  • 15% annually of KfW program “Financial System Development Program in the Rural Areas”.

*Set by the Credit Committee depending on the FO’s credit history and Frontiers pricing policy
Provision

For the first category FLIs:

  • Loan portfolio;
  • In certain cases loans may be issued without collateral.

For the second category FLIs: Collateralize the loan, at a minimum, by two types of security listed below:

  • Loan portfolio;
  • Guarantee from key persons, and/or founder(s);
  • FO’s assets (office, real estate and so forth), if available.
  • Third party guarantees.
  • In certain cases, according to the Credit Committee decision, also the real estate of key persons.

For the third category FLIs: Collateralize the loan, at a minimum, by three types of security listed below:

  • Loan portfolio;
  • Guarantee of key persons and/or founder(s);
  • Real estate belonging to the company, and/or key persons/founders, or third party legal entities;
  • Third party guarantees.

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.
Loan issuance procedure

No more than 3 (three) tranches within two months from the moment of signing of a loan agreement.
Payment for consideration of the application and issuance of a loan

1% of the loan size (held at the disbursement of the 1st tranche)
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.
Covenants
  • The capital adequacy ratio of a company should be at least 15%;
  • The leverage should be no more than 300%;
  • The value of the indicator “Portfolio at risk for more than 30 days + restructured loans”:
    • to receive a loan under standard conditions, it should not exceed 5% + 3%;
    • to receive a loan under the KfW project “Program for the Development of the Financial System in Rural Regions” should not exceed 5% + 2%.
The term of consideration of the application
  • For new clients – no more than 20 (twenty) working days;
  • For repeated clients – no more than 10 (ten) working days.