Bond-financing Program . . .

 In order to be considered eligible and to qualify for bond financing, the project and/or program must meet the specific criteria, that includes, but is not limited to, creation of new jobs (gainful employment); job retention (prevent the loss of jobs); elimination of slum and blight; revitalization of pockets of poverty; advanced research and development of medical and healthcare initiatives; public/private partnership programs; research and development of alternative energy; research and development of renewable energy; energy-related industry; single- and multi-family residential projects; tourism related projects; industrial projects; commercial projects; real estate development projects; retail projects;  and, for other humanitarian purposes.


An industrial development revenue bond, hereinafter referred to as “IRB” or “Bond,” is a unique type of revenue bond issued by a state or local government. The bond issue is sponsored by a government entity but the proceeds are directed to a private, for-profit business. Bond financing is a form of conduit financing, whereby the government agency issuing the bonds is acting as a conduit to the bond markets of the world.   Municipal debt securities issued by a government agency on behalf of a private sector company and intended to build or acquire factories or other heavy equipment and tools, or to acquire, develop and construct any other eligible projects. Industrial Development Revenue Bonds are issued by a government to assist a private company that might otherwise be unable to obtain financing for its industrial venture or unwilling to undertake the project on its own. The government's goal in providing the debt securities is to improve the economic and employment conditions of its region. 

 An IRB differs from traditional government revenue bonds as the bonds are issued on behalf of a private sector business. IRBs are typically used to support a specific project, such as a new manufacturing facility or a new hotel, hospital, tourist attraction, commercial facility, or a housing project.

 The bond is issued by a political subdivision of a state, a body politic and corporate, a state or federal government agency, or, a quasi-government corporation, with the bond proceeds used to lend to a private entity to finance a specific private project.  The business is responsible for repayment of the bonds. The sponsoring government agency that issues the bonds holds title to the underlying collateral until the bonds are paid in full. This arrangement provides special investment quality status to the bonds, and many times a property tax exemption on the collateral. The sponsoring government is not responsible for bond repayment and the bonds do not affect the government’s credit rating. IRBs are desired as the private business receives a lower interest rate and a longer term.

 Bond proceeds may be used for a variety of purposes, including land acquisition, building construction, machinery and equipment, debt restructuring, real estate development fees, and the cost of bond issuance.


The Issuer of the Bonds:             The bonds are issued by a government agency, government authority, a subdivision of the state, a body politic and corporate, or, a multi-government-owned banking institution, such as the International Monetary Fund, the World Bank, the Inter-American Development Bank, the North American Development Bank, the Import Export Bank, the Asian Development Bank, the International Finance Corporation, the I-Bank of California and, the Asian Infrastructure Investment Bank.


OCS is the managing partner of several joint venture partnerships (“JV Partnerships”) that have been formed for the sole purpose of investing in and funding the private-placement of taxable, unrated government-issued industrial development revenue bonds.  The JV Partnerships hold the funds in trust until such time as it becomes necessary to fund the private-placement of the Bonds.  Sometimes, the private-placement of the Bonds takes place within Ninety (90) days from the date that the Bonds are issued or that the Irrevocable Bond Financing Commitment is issued, sometimes longer.


 During the period that the JV Partnership’s funds are being held waiting to fund the private placement of the Bonds, OCS will invest said funds in various high-yield private-placement trading programs so as to earn the best and highest rate of return on investment for the benefit of the Joint Venture Partners.


Here is an outline on the steps taken by the Joint Venture Partnership:


1.       The funds are transferred to the custody and control of the Managing Partner of the Joint Venture Partnership.


2.       The custody and control of said funds can be accomplished in several different ways:


a.       a cash account in the name of the Joint Venture Partnership;


b.      One or more certificates of deposit (CD) issued to, in the name of, for the benefit of and in favor of OCS American Capital Ltd (U.K.) or OCS American Capital Ltd (H.K.) acting as the managing partner of the Joint Venture Partnership;


                   c.       a bank guarantee; or,


d.      a Stand-by Letter of Credit (SBLC).






3.       Because of the fact that there is a “Lull Period of Time” whereby the funds are sitting still and are not needed, during that period, OCS will invest said funds in a high-yield private placement program to earn the highest rate of return possible during that same ninety day period for the benefit of the Joint Venture Partnership.






4.       After the ninety day period, OCS and the Joint Venture Partner will make a decision as to whether to proceed with a Forty-week (10 Month) investment program, or to proceed with funding the private placement of the Bonds with the earned returns on investments.






5.       The objective here is to fund and/or finance the projects for our joint venture partnerships and for our clients with proceeds from the earned returns from the high-yield private placement programs.






6.       The Parties involved in a TAXABLE bond-financing transaction:






a.       The Bond Facilitator – OCS American Capital Ltd



b.      The Bond Facilitator’s Counsel



c.       The Bond Facilitator’s Underwriter



d.      The Bond Facilitator’s Financial Analyst



e.       The Bond Applicant – (Borrower)



f.        The Bond Issuer – (Lender)



g.      The Bond Issuer’s Counsel



h.      The Bond Issuer’s Financial Advisor – an Investment Bank



i.         The Bond Counsel (Issuer of The Bond Opinion) – Appointed by Bond Issuer



j.         The Bond Placement Agent – Private Placement of the Bonds



k.       The Bond Trustee – the Trust Department of a major bank



l.         The Bond Trustee’s Counsel



m.    The Bond Buyer – Qualified and Accredited Institutional Investment Fund



n.      The Bond Buyer’s Counsel






7.       Because the bonds are taxable, the bond-financing process time line is shortened by several months. Tax-exempt bonds take much longer to process. Taxable bonds do not require a rating, credit enhancement, or registration with DTC.  In some instances, the Bond Buyer (Investor) will require that the bonds be assigned an ISIN or CUSIP Number.






8.       Bonds may be issued by a government agency in one state to provide bond-financing for project in another state.