The Appraisal and Due Diligence stage is designed to (i) describe the Bank’s prospective involvement (ii) identify and elaborate upon key issues, including necessary information on the operation, the client, the financing plan, and the market, and (iii) capture all major risk areas and ensure they are properly evaluated.

 

The principal output of the Appraisal and Due Diligence stage is the Final Review Document (FRD), a comprehensive document which builds upon the CCD, describing and justifying the operation, and including detailed information about (i) operation objectives/ targets, (ii) the client, sponsors, guarantors, and co-financiers, including an assessment of their creditworthiness (iii) analysis of the market, (iv) terms, conditions, and covenants (v) implementation arrangements, (vi) creditworthiness and financial returns, (vii) economic development and regional cooperation impact and (viii) discussion of risks, risk mitigants and the security arrangements, and (vii) other key strategic issues involving shareholder value, procurement, environmental, corporate governance issues etc.

 

The FRD represents the core document presented to the Credit Committee at Final Review. At submission, it is accompanied by the signed Term Sheet, a valid CCD, a signed Mandate Letter/ Request Letter and the completed Letter of Information should be in the possession of the Bank at submission, and full financial projections for the operation must be available upon request.