K30M CLAN COMPANY LOAN FACILITY
The Board of MRLC resolved in April 2013 to set aside K30 million from the capital of the Trust to fund the Facility, prescribing that each clan company be entitled to K5 million each from the Facility.
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.
Watch the EMTV video of the Facilty Launch on Lihir island
In realizing this goal, the Facility is premised on the following objectives –
To build the internal business management capacity of each clan company to effectively manage revenue and capital gains on assets worth more than K5 million
To invest K5 million in each clan company by December 2016
To facilitate long term income generation opportunities for the Beneficiaries of the Trust through each clan company;
To strengthen MRLC’s in-house operational and management capacity by December 2016
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.
Watch the EMTV video of the Nissal clan signing the facility in Port Moresby