We are Master Affiliates of a Lender that will Monetize Bank Instruments and Government Bonds Worldwide.
- Most to 90% depending on the issuing Bank. 4% Fees (includes 1% to Originating Broker) nets the Client 86%.
- Minimum Instrument $1 Million.
- Interest Rate Zero, One Year Loan.
- Money can then be put into Trade depending on Platform requirements.
- Close in 2 weeks.
- Can be existing Instrument or an RWA Letter from issuing Bank if Fresh Cut, or
- Contract with Collateral Provider if they are providing Instrument.
- Can be Leased Instruments!
- Great way to Fund Projects.
Procedures for Financial Instrument – Monetization/Lending Program
The Lender provides monetization (lending) on the following financial instruments. The “Loan to Value” is based on instrument type, issuer, rating, coupon size, subordination type, maturity and backing of the instrument (cash or asset). If you do not see your instrument listed, please call as the Lender will accept other instruments on a case by base basis.
- Bank Guarantee (BG)
- Standby Letter of Credit (SBLC)
- Medium Term Note (MTN)
- Bank Draft Check (BDC)
- Government Bond
- Borrower Submits KYC / Instrument Documentation. Borrower provides a KYC Package (client information sheet, color copy of financial instrument, color copy of passport, articles of incorporation, corporate certificate of good standing, non-solicitation & authorization to authenticate/verify) and an executive summary/use of funds detailing the client’s project or funding request. We mutually prepare and submit client’s documentation to the Lender with supporting documents to clear compliance.
- Instrument Verification. If the financial instrument exists, an authorization to verify & authenticate is required. If the instrument has yet to be issued/cut, the Lender will require a bank readiness letter or fully executed contract between the borrower and instrument provider.NO EXCEPTIONS.
- Requirement for Acceptance of Borrower’s Bank . The Borrower’s bank must be a rated bank by Fitch, Standard & Poors or Moody’s. If the bank is not rated, the Lender will evaluate on a case by case basis only.
- Lenders Acceptance And Issuance Of the Secured Loan Agreement (SLA). Once compliance is cleared, Lender immediately issues a Secured Loan Agreement (SLA) and Irrevocable Fee Protection Agreement (IFPA) outlining the full details of the monetization (loan), to include: Terms, Loan to Value, Delivery Instructions and Fees provided to consultants/intermediaries.
- Commencement Of Transaction. Upon final review and execution of Lenders documents (SLA and IFPA), the client will engage their bank to issue the appropriate transfer protocol (MT760, MT542, DTC Free Delivery or Euroclear Free Delivery) for the financial instrument. The Lender will allow 3 banking days after both parties fully execute the SLA & IFPA to deliver the financial instrument as previously agreed. Extensions will be considered on a case by case basis.
- Transfer Protocol. All financial instruments will be transferred via MT760, MT542, DTC Free Delivery or Euroclear Free delivery. All instruments must be freely transferred in the name of the Lender (as beneficiary) to the pre-designated account on the SLA. All language for transfer protocol will be discussed and clearly accepted by both parties prior to the actual transfer.
- Loan Disbursement. Upon receipt of the financial instrument, the Lenders bank will complete its due diligence and final SWIFT confirmation. Upon confirmation of the financial instrument, the Lender will begin moving funds or secure the credit line/facility to fully fund the loan. This process takes 10 – 15 banking days from confirmation of the instrument and will be clearly outlined and agreed to within the language of the SLA. A tranching/wire schedule will be finalized between the Borrower and Lender within the 10 - 15 banking day window, typically tranching every other day until the loan is fully funded (typically 1-2 weeks total, depends on loan size, borrower’s bank capabilities etc.)
- Beneficiary / Assignment Status Of The Bank Instrument. The Lender will maintain the “Beneficiary” status of the financial instrument during the length of the SLA (1 year).
- Expenses For Extension. The SLA can be extended beyond the 1 year term, however, an extension fee will be required for such request. Extensions are on a case by case basis.
- Fees. All fees for commissions earned (5% of Face Value - Maximum Fee) by consultants/intermediaries will be paid upon the borrower’s receipt of each wire/tranche. A sub-fee agreement will be provided to all consultants/intermediaries.
ALL ITEMS/DOCUMENTS REQUIRED
(all documents must be provided, prior to consideration for this transaction)
- Client Information Sheet
- Color Copy of Passport
- Non-Solicitation Agreement
- Color Copy of Instrument or Bank Readiness Letter (one or the other is mandatory)
- Authorization to Authenticate
- Corporate Resolution
- Corporate Certificate of Good Standing & Articles of Incorporation
- Executive Summary for Project
- Proforma(s) for Project (use of funds, cash flow, sales, stabilization etc…) – must be complete
- Legal Reference (financial institution or legal firm)
- Genealogy of Consultants (approved by client)
Call (310) 878-2318 or use the form on the right to contact us.
Last Updated on Sunday, 13 November 2011 19:17