FNPF eyes housing project
THE Fiji National Provident Fund has expressed interest in financing the Public Private Partnership for the Affordable Housing Project that was unveiled last October.
The ANZ Bank had also sent in its expression on interest to Government to be a financier in this project in December last year.
FNPF’s chief investment officer, Naibuka Saune states in a letter dated January 12 that FNPF can offer project financing through term loan to the winning bidder.
“Some key terms of the financing include — debt denominated in local currency, fixed/variable rate options, secured lending and maximum loan term of 20 years,” said Mr Saune.
“The Fund will require to undertake extensive due diligence on the borrower and including, but not limited to financial, technical, legal, environment, social and governance due diligence and acceptable debt/ equity structure.
“All consultants, contractors, subcontractors and suppliers will need to be holding valid FNPF and FRCS (Fiji Revenue and Customs Service) compliance.
“Financing approval will be subject to FNPF Board approval, followed by execution of key project and finance documents, including Development Agreement, Loan Agreement and Security Documents and satisfaction of all Conditions Precedents.
“Disbursement will be on progressive basis subject to certification from an Independent Quantity Surveyor.”
Mr Saune said while FNPF was financially capable of providing standalone funding, syndicated lending with other commercial banks and financial institutions would be preferable.