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Arka Projects is targeting non-listed, un-rated middle market companies with good management track record and sound business fundamentals in China, Indonesia and the rest of Asia. This target market is deterred by the large upfront expenses incurred for exploratory capital markets advisory work. Tough macro-economic conditions combined with the middle market companiesí inability to access the high yield financing market due to hefty upfront exploratory costs, agency fees and high minimum size requirements, has created the need for flexible, private mezzanine capital in the US$10 million to US$100 million range.

We offer a viable alternative and look forward to bringing timely business solutions for business owners through offering high yield un-rated commercial paper/bonds as an alternative to commercial bank debt and equity financing through structuring acceptable issuance of collateralized debt obligations. Clients will need collateral in the form of land, incomplete real estate or revenue producing assets (e.g. power plants) to undertake collateralized debt funding in the form of commercial paper/bonds. We value add through consulting including compliance with client's domestic legal requirements for offshore borrowings. Our client, a private sector property developer in China is expected to raise US$20 million through collateralized debt funding by end 2005.

Initial hurdles for exploratory capital markets access work include transaction costs for traditional investment banking transactions; e.g. up-front payments for the various professional parties for IPO transactions and hefty agency fees for bond issues. Our alternative is an upfront payment of S$30,000 for bonds structuring, distribution fees, legal fees and travel expenses for due diligence. The payment is only after clearance by the bond distributorís credit committee clears clientís bond issuance proposal. Total legal expense for a un-rated/ commercial paper/bonds transaction will be collected only after the successful conclusion of a bonds transaction, at the bonds funds disbursement stage. If a transaction is not successful for whatsoever reasons, the S$30,000 is treated as abortive fees and the client is not liable for further expenses. We look forward to being your partner in progress and prosperity, as your future success will be our own future success.