Case Analysis Report Essay Example | Topics and Well Written Essays - 500 words

Case Analysis Report - Essay Example Additionally they were given the rights to explore and exploit two gas properties. However, the company required funds to develop and exploit the sites. Thus, it went into an agreement with Macquarie Bank which agreed to finance them with US $45million, with an interest of 15% p.a and 50% equity stake. After the agreement, the reserves were extensive and profitable, so the East Cameroon Company was able to repay the loan quickly. The case study is one that the Macquarie bank is not willing to finance the company, two, and it still owns a 50% stake in the East Cameroon Company. The East Cameroon Company, Chief Executive Officer (CEO), Campbell Evans established that the company could not move on since they had little control of the company. The bank now had 50% stake. Meaning the original founders could no longer control the business as before. Evans is, therefore, looking for alternative funding options. At first he is more interested in getting the financial support to continue with the exploration (Cunningham, 2002). The most financial proposals he has received are from banks and require equity component. Evans and the other shareholders are not ready to give out more equity to banks. Evans would like to return the company’s shares as before so that they can control the company. Evans was approached by Bemo Securitisation (BSEC) financier who offered an interesting financial solution. The solution is the use of Sukuk bond. This is an Islamic finance that would allow East Cameroon to reverse Macquarie’s equity stake. Additionally, it would replace it with a high yielding bond-like channel. However, Evans was not certain of how the Sukuk bond works. He therefore, decided to research before making any decision. The Sukuk structure was more complex that what he had thought. One, It consisted of securitizing hydrocarbon