Project Financing
Partnership – the basis of success
Project Financing is a form of crediting of construction of residential and office buildings intended for sales or lease.
Loan purpose
Loan is envisaged for financing of legal entities, companies that are established solely for the purpose of implementation of a specific project (SPV - Special Purpose Vehicle) which also are the holders of construction permits. The founders must have experience and references from domain of construction.
For what purposes can you use the loans for Project Financing?
- For payment of building construction
- For payment of communal costs for use of construction land
- For payment of participation to public utility companies
Terms
- New legal entity (SPV - Special Purpose Vehicle) that is established solely for the purpose of implementation of a specific project must be a holder of construction permits
- Minimum amount of investor’s downpayment in the project is between 20% and 30%
Loan realization is envisaged in tranches – "per payment certificates" – whose dynamics is determined by the beneficiary himself. Repayment dynamics is determined by the investor. Repayment is based on the sales of the given real estate.
Loan collateral
- Mortgage on building in construction
- Pledge over the company’s share
Advantages of Project Financing in KBC Banka
- Security for investor, Bank and future customer
- Closed financial structure - provided funds for building of real estate
- Faster sales of apartments - favourable mortgage loans for appartments from project financing
- Higher profitability for investors (because of the closed financial structure the sale is done at the end of the construction by projected prices)
- The project analysis is emphasized
- Credit repayment is made from the sale of units in the building that is the credit subject
Advantages of buying appartments built from Project Financing
- KBC Banka grants mortgage loans (with the possibility of delayed payment start) to physical persons for buying appartments in buildings whose construction is credited by the bank
- The possibility of buying an apartment at the start of construction without waiting for completion of certain percentage of the building
- KBC Banka finances the construction of the building and controls it until completion, in which way the customer is protected
- Funds from sold units are deposited to RSD and FX purpose account of the loan beneficiary - investor
- Funds from sold appartments cannot be treated as assets belonging to the investor until he obtains usage permit
Current offer of appartments built from KBC Banka's project financing
For additional information please call KBC Info telephone number (011) 30-50-575 any work day from 9:00 until 18:00 or visit our nearest branch office