Bank instruments: SBLC | BG | MTN | Bond
We are agents of the lender issuing bank instruments.
We are part of an international private financial service organization, consultant of worldwide development business opportunities. We are specialist of funds, loans, bank guarantees and working with large lending's affiliated to a corporate consortium group operators and providers of Bank Financial Instruments.
The company provides consulting services, accounting and legal assistance in the international field.
Specifications
Bank Instruments ‐ full details are supplied by lender only all are issued by major international banks and assigned directly in the Borrower name. Applicant/Borrower has to be professional and familiar of how to use bank instruments. Lender do not educate or provide any advice as Borrowers can incorporate such financial confirmation into their financial plans.
Type of instruments
Type of Instrument and redelivery to Lender: Depending on availability, the Bank Instrument/Collateral is offered in the form of Certificate of Debt: which can be MTN, BONDS, EUROPAPERS, COMMERCIAL PAPERS, BG and SBLC. Lending period is 1 (one) year plus one day from MT760 date. Applicant/Borrower must return the bank instrument unencumbered to the Lender 15 days before its maturity date; it is possible to extend the leasing period, with 15 pre‐advise days, yearly and for maximum 5 (five) years: yearly fees remain the same of first year.
Starting the transaction
Upon receipt and acceptance of Application Form, Lender will se nd Lending Agreement for signature, issued according to Application Form requests and in the same time Applicant/Borrower will receive the invoice covering bank expenses due to permit to cover the call option settlement fees to reserve bank instrument to stock exchanges in the amounts that we will provide.
Note: MENTIONED MONEY WILL BE REFUNDED AFTER SUCCESSFULLY CLOSING THE TRANSACTION OR BORROWERS HAVE THE RIGHT TO DEDUCT IT WHEN ARRANGE FOR SERVICE FEES PAYMENT
Values
Minimum /maximum face value amount availability:
Transactions for minimum face value amount of USD/EUR 10,000,000.00 are acceptable after Lender approval of application form. Lender can allow delivery of Instruments for face value amount lower than ten million, but not lower than five million. Service fees rate of 12.00% for all instruments having amount lower than ten million must be paid by unconditional wire transfer MT103. Applicant/Borrower who need amount lower than ten million, cannot select a tranche of a bank instrument having higher face value amount but must ask time by time to Lender a list with all instrument details.
Transactions for Maximum face value amount of USD/EUR from 1B to 3B (based on current financial market availability) are acceptable after Lender approval of Application Form.
Security Lending
The contractual documentation is negotiated according with Applicant/Borrower specific requirements. Once the parties have duly executed Contract/Agreement, the Applicant/Borrower is only legal and authorized entity, which is allowed to handle the lending transaction, to receive the documents and to maintain communication with the Lender or their brokers.
Payment fees
Payment of Fees: Credit Enhancement Bank Instrument is available at service fees stated on the instruments lists i.e. ....% of Face Value due to the lender for the duration of one year (excluded any interest or coupons) plus commission due to intermediaries group. Only below payment terms and conditions are allowed. No payment from profits that applicant/borrower expect in the future through trading/platform or loans are accepted.
Service Fees: Borrower must provide for the payment of service a/o leasing fees, not later than 20 calendar days from call option date, according to following ter ms (which drafts are attached and cannot be amended by Borrower or their bank or anyone else):
a. conditional ICPO (Irrevocable Corporate Pay Order) endorsed by an acceptable borrower borrower bank or
b. unconditional bank backed Promissory Notes, with expiring date from 180 to 270 days as negotiated between the parties (having endorsement per aval of an acceptable bank) or
c. conditional swift MT103 or MT700
d. unconditional swift MT103: payment service fees for Instruments having face value amount lower than ten million EUR/USD
Explanation about details
Why Lender asks to pay call option:
On many occasions Lender are asked why a client should pay a call option deposit a/o if he can make a deferred payment or add it to the service fee plus many other requests.
This should not be interpreted as an upfront fee. This is a real cost that Lender must pay. The deposit is contractually guaranteed to be returned by the Lender upon successful completion of the transaction. As per below explanation, when Lenders receive a request to borrow a bank instrument they are obliged to take out an option for which fees must be paid; if for some reason the Borrower did not arrange for the lending process the Lender would be out of pocket. It is therefore essential that anyone wanting to borrow a bank instrument must pay a Call Option fees which are either refundable on completion of the transaction or can be deducted by Borrowers when they arrange for payment of service fees.
What is a call option? :
In finance options are types of contracts, including and, where the future payoffs to the buyer and seller of the contract are determined by the price of another security, such as a common stock. More specifically, a call option is an agreement in which the buyer (holder) has the right (but not the obligation) to buy an asset at a set price (x y) and the seller has the obligation to honor the terms of the contract. A put option is an agreement in which the buyer has the right (but not the obligation) to exercise by selling an asset at the strike price on or before a future date and the seller has the obligation to honor the terms of the contract. Since the option gives the buyer a right and the seller an obligation, the buyer pays the option premium to the seller. The clearing houses guarantee that an assigned seller will fulfil his obligation if the option is exercised.
Delivery of documents:
After signature of Lending Agreement and wire transfer of the call option fees in the above agreed mentioned amount, within 48 hours after receipt of funds on the Lending Manager Account, call option of the bank instrument (BOND/MTN) will be arranged by the Clearing and Settlement Company (Lending Manager). After that Lender will send their Corporate Pre‐advice of Pro‐forma Invoice with all details of the Bank Instrument, Corporate Deed of Assignment, Bond Power, Euroclear first page print out, Refinitiv Eikon (London Stock Exchange Group) print out and Security Card of the Stock Exchange market
where the Instrument is quoted, Prospectus of Instrument Issuing Program (if available), to permit the designated Borrower's Bank Officer to check authentication and verification of bank instrument.
Assignement of bank instrument:
On receipt of payment covering service fees ‐ upon successfully Due Diligence carried out by Lender Compliance Officer ‐ Lender bank will send swift MT 760 on receipt of which conditional payment (ICPO, MT103, MT700) must be unblocked and funds released to Lender. Lender’s bank is RWA to send a swift MT799 to the Borrower’s designated receiving bank ‐ on no charge basis – informing to be ready to send MT760 to their client's account Nr. ....... with assignment of the instrument referred to in the Lending Agreement
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