Under the Facility and subject to the relevant financing agreement, MRLC makes available to a clan company a financing facility in the amount equal to K5 million. This facility will be held in trust and on term deposit, from which draw downs by the clan company may be made in accordance with the terms of the financing agreement.
The account is to be governed by trust rules for the management of the account. Provided relative pre-conditions are met, each clan company may submit a single or multiple investment proposals up to the K5 million value. All investment proposals are evaluated through an integrated, exhaustive and objective assessment process policed by MRLC’s board committee responsible for the Facility through MRLC’s senior executive team.
The goal of the Facility is to grow the business of each clan company to a net worth of over K10 million by December 2020.
In realizing this goal, the Facility is premised on the following objectives –
Unless the board of MRLC resolves otherwise, the focus of the Facility at its inception is generally for clan companies to participate in strategic investment assets that will generate immediate cash flow once secured with viable potential for capital appreciation and nil CAPEX within a financial year or two after acquisition.
Annual income budget and projected yields for the Facility anticipated by the MRLC board will also influence the objective management of the Facility.