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Structured Project Finance

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​China

PROJECT STRUCTURED FINANCE INVESTMENT

USA four leaders Reagan, Wilson, Bradley

MG Power, A division of MACH GLOBAL POWER  is a Financial Consultancy and Financial Service Company and their proficiency is commendable in this business. Mach Global Power transcendence is due to its global friends and influence, experience and professionalism, and, knowledge and resourcefulness to create the proper platform to satisfy the requirements of the client’s endeavor, tasks, and interest.

Mach Global Power offers solutions to Funding Services, Project Structured Finance, and Sovereign Guarantees given by friendly countries and funding institutions and organizations to clients worldwide such as:

  • Private and Public Organizations

  • Corporations

  • Governments

  • Institutions

.Pictured Above from Left to Right: Noel far left with Los Angeles 3-term Mayor Tom Bradley and with the banker - developer, Ray Watt, and Honorable K. Takeda of Japan while Right Picture: With USA Ex-President Ronald Reagan and Noel Banawa next to US Presidential Plane.

The lower picture is shown: Left 2 Right: Picture with Sacramento, California Mayor Anne Rudin with myself (Noel), and Honorable K. Takeda of Japan while Lower Right Photo Noel with ex-Senator and 2-term California, USA Governor Pete Wilson.

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Mach Global Power Financial Services as acquired from friendly countries and institutions are only given if and only if recipients have a reputable status.A

Pictured: Top Left 2 Right >> Picture was taken 37 years ago In front of Saitama Bank in Saitama Prefecture, Japan with my colleague Takeda-sensei after our bankers meeting while Top Right Picture is with the top CCP Chinse Government leaders with Noel in the middle was taken + 30 years ago.

Lower Left 2 Right >> Noel Signing ceremony with the Chinese Government of Anhui, China for the Coal-Fired Power Plant Project in the year 2000 taken in Fuzhou, Fujian across Taiwan while Lower Left picture is the signing ceremony for the Coal-Fired Power Plant integrated with Kenaf Pulp, taken in 1990, Noel is seated Right, 30 years ago today.

WHAT IS A SOVEREIGN GUARANTEE?

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It is instructive to note that although many emerging market infrastructure projects utilizing project financing have been conceived, most have been stillborn mainly because Sovereign Guarantees have been impossible to obtain. Mach Global Power as an ally and affiliate will lend you a hand through its global influence and associations. Your dominance in your industry can achieved.:

・Sovereign Guarantee scheeme 

A guarantee by the government that all obligations will be satisfied when and if the primary obligor goes into default. It is the risk that a foreign central bank will alter its foreign-exchange regulations thereby significantly reducing or completely nulling the value of foreign-exchange contracts. The Sovereign Guarantee is just a “standard” financial guarantee but it is issued by a Government body not a private institution like banks or corporations.

WHY DO GOVERNMENTS USE SOVEREIGN GUARANTEES?

One of the most attractive features forA project financing is that it allows the sponsors of a project to guarantee the obligations of a special purpose project company in lieu of incurring direct obligations. Being contingent obligations, guarantees need not be reflected on the guarantor’s balance sheet. However, guarantees are required to be disclosed in footnotes to financial statements in accordance with the prescriptions of the United States Financial Accounting Standards Board.

Indeed, rating agencies often take note of a sponsor’s contingent liabilities, particularly when such liabilities are substantial. Nonetheless, the impact of such guarantees on a sponsor’s credit profile is, by far, much less severe than an equivalent direct liability on its balance sheet. Sovereign Guarantees have therefore become one of the keystones of project finance. Countries that wish to issue such instruments need to be aware of the need to have the liability noted in their financial statements as a contingent liability.

WHAT IS THE PURPOSE OF SOVEREIGN GUARANTEES?

Governments at all levels can issue “financial guarantees” in order to financially promote projects that are deemed to be in the public interest. The guarantees are used as economic incentives for the capital market to finance the projects. In Sweden, for example, financial guarantees have in the past been used to promote agriculture, fishing, housing construction, shipbuilding and energy supply. From the beginning of the 90’s, they have primarily been used to alleviate the Swedish bank crisis and for promoting investment in infrastructure. The Sovereign Guarantee is only as good as the Government issuing it.

WHO CAN ISSUE SOVEREIGN GUARANTEES?

Generally speaking a Sovereign Guarantee is issued for project financing and loans for government projects such as: Power Projects, Roads, Railways, Ports and Shipping Infrastructure, Telecommunication and other necessary large State Infrastructure projects. In the case of private projects, the Sovereign Guarantee poses a totally different set of problems. Depending on the Constitution (or Ruler) of a particular country the Civil Government Administration will evaluate projects looking to be underwritten by a Sovereign Guarantee and make a recommendation to the Parliament (or the Ruler of the Country) as to whether issuing a Sovereign Guarantee is prudent or allowable.

Usually if a Parliament term in office is approaching its end, “no sovereign guarantees were issued to the private sector, but they will to the government sector. In all cases based on the Constitution of a particular country it comes down to the judgement of the President, Prime Minister or Ruler to issue or not issue sovereign guarantee on the private sector.

He/she can do it (issue) provided that the project is classified as sort of to solve an impending crisis, for example power crisis, water supply crisis, etc. Now, in the world many newly elected governments may issue Sovereign Guarantees to power projects which need utmost attention to solve power crises that are foreseen to happen in the immediate future. In general Sovereign Guarantees will be issued by the Ministry of Finance and ratified by Parliament.

Meeting in Ginza, Tokyo, Japan with top political leaders, traders, and banker

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Bankers and trade meetings held at the famous Banker's Club in Ginza, Tokyo, Japan. Pictured 11 years ago seated from left my American partner, Master Architect D. Sam Scheele, Chairman - Director and Noel Banawa, Co-Chairman & CEO seated right both representing Los Angeles based ERG Group. Standing from Left to Right: Tokyo Congresswoman, The ex-president Mr. Nagashima of the +400-year old worlds' oldest trading house and Mitsui bank, our Japanese friend, and the Chinese Admiral.

​Project Meeting Scene

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China

Power Generation Contract Signing by Electric Resource Group, Inc., USA Messrs D. Sam Scheele, chairman, and Manoel B. Banawa, Co-Chairman & CEO and the Chinese Government Electric Company

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Cambodia

Noel's Picture with one of the senators of Cambodia and colleagues and friends

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China

Bus Export Contract Signing by Fortune Motors USA, Mr. Manoel B. Banawa, CEO and GACBUS, Chinese Government State-Owned Enterprises.

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Malaysia

Noel picture with a top general of Malaysia with colleagues and friends during the signing ceremony 10 years ago held in Hong Kong.

Cambodia

Signing ceremony for the establishment of an International University and Hospital, in Phnom Penh, the Kingdom of Cambodia with its president of the university, the ex-Minister of Education of Cambodia, Noel Banawa, Co-Chairman & CEO - Director of Diamond Point Ltd., United Kingdom together with its partners, Messrs Khoun Ly, John W. Lee, and Sam Rith, the year 2019 in Phnom Penh, Cambodia.

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CHINA

Signing ceremony - luncheon meeting was taken in Shenzhen City, China with the Chinese Government state-owned enterprise officials and with Manoel Banawa, Pareng Romeo and Andy.

officials of Sino Group.

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Ecuador

with the beautiful Consul General Mariella Molina Rodríguez,and MG Power Group CEO Noel Banawa

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