Funding Methodology

Through its banking affiliates in Europe, UNCOUSA is able to provide bankable collateral negotiated over oil sales and commissioner agreement/contract-performance guarantees by way of supporting direct-pay letters of credit issued by top world banks with a Standard & Poor's rating of "A" or better.

The bank collateral's value and loan-protection accounts under management by specialized investment management banks are then used to secure bank loan(s) for the projects at competitive and advantageous rates.

The aim of the Loan Protection Account is to free and clear the collateral from liens and claims at the end of term. As part of the closing procedures, the collateral value will be communicated via bank channels to the lending banks.

Dr. Paulette Long of UNCOUSA is responsible for negotiations with respect to the bank collateral, including bank delivery- and closing-procedures outlined by the respective banks.

UNCOUSA and its investment-management partners have been using investment-management tools to fund good-cause projects over a considerable number of years. The financial mechanism used is known as program-related investments (PRIs). PRIs are investments made to support charitable activities that involve the potential return of capital within an established time frame. PRIs include financing methods commonly associated with banks or other private investors, such as loans, loan guarantees, linked deposits, and even equity investments in charitable organizations or in commercial ventures for charitable purposes.