Monetize Bank Guarantee, SBLC, MTN

SPECIAL MONETIZATION PROGRAM FOR
BANK
INSTRUMENTS & BANK LODGED SKRS
PROGRAM
HIGHLIGHTS:
1. Designed to work with already issued, existing instruments or cash assets.
NO Fresh Cut or Soon to be issued instruments without a verifiable Bank
RWA stating that the Bank is RWA to issue a MT-760. The only
acceptable
delivery
method
for
this
program
is
a
Swift
MT-760.
2. Designed for World Banks that have a Moodys or S & P Credit RatingNo Non Rated Banks (Please ask about our Non Rated Bank Monetization
Program.)
3.
Both
Owned
and
Leased
Instruments
are
acceptable.
4. BGs, SBLCs , MTNs and Cash (Blocked Funds) as well as any assets
including bonds that are lodged in a Rated Bank as long as the Bank can
issue a MT-760 certifying the value of the asset. NO Non Bank Lodged
SKRs.
5.
Minimum
Instrument
Size:
$50
Million.
6. For Owned Instruments: Non Recourse Loan To Value up to 60% Less
5%
Commission
depending
on
the
specific
Bank
7. For Leased Instruments: Non Recourse Loan To Value up to 55% Less
5%
Commission
depending
on
the
specific
Bank
8.
Proceeds
of
Monetization
Paid
out
in
3
Installments:
A. 33% within 10 Banking Days after Good receipt and verification of
the
MT-760
B. 33% within 20 Banking Days after Good receipt and verification of
the
MT-760
C. 33% within 30 Calendar Days after Good receipt and verification of
the
MT-760
PROCEDURES:
1. The client will submit the following: Standard CIS, Passport, copy of the
Instrument that has already been issued and a copy of the Bank Statement
showing the Instrument in the Client's account. If the client has Blocked Funds
then a copy of the Bank Statement will suffice. PLEASE NOTE: We also require
a verifiable RWA from the issuing bank stating that the Bank is RWA to issue a
MT-760.
2. The client will be issued a contract from the monetizer. The usual time frame is
within
48
to
72
banking
hours.
3. After both parties sign the contract and the client will inform the lender about
the account details of where the instrument is being swifted from and on what
day. The MT-760 must be sent within three (3) banking days after execution of
the
contract.
4. The sending bank will send the MT- 760 to one of these two correspondent
banks: Commerzbank, Germany OR Bank of New York Mellon, Germany in
EUROS or if in USD, the Swift should be sent in Euro Equivalent.
5. The receiving bank will authenticate and confirm the Swift per the protocols
specified on the contact and the Payment cycle will begin as detailed above
under
Program
Highlights.
6. Term of Monetization is One Year and One Month. Instrument is returned
within
15
days
prior
to
the
expiration
of
13
months.
FREQUENTLY
ASKED
QUESTIONS
AND
ANSWERS:
1. Question: What type of Instrument/ Asset qualifies for this Program?

Answer: Any Asset or Instrument where the client is able to have his/her bank
issue a MT-760 with the proper and standard Blocked Funds verbiage would
qualify. This would include: Cash (Blocked Funds), Bank Guarantees, Stand By
Letters of Credit, Medium Term Notes, as well as Hard Assets as long as they
are
lodged
in
a
proper
bank.
2. Question: Must the Instrument already be issued or can you work with Fresh
Cut
Instruments?
Answer: The requirement is for the Instrument, Cash or Hard Asset must already
be on deposit in the client's bank. In certain cases, we would accept a RWA from
a Bank if the instrument was not issued. However, we will not work with a NonIssued Instrument where there is a Provider involved, as experience has shown
that
the
vast
majority
of
these
instruments
are
never
issued.
3. What are the time frames involved in Issuing a contract and closing?
Answer: This is a very important question. Our monetizer works very quickly to
issue a contract. Once the contract is issued, the client reviews it. Any/ all
questions will be addressed. Once the client signs the contract, the client's bank
must be prepared to issue the Swift MT-760 within 2- 3 Banking Days (No
longer.) This will be specified on the contract. This short time frame is due to the
fact that once the contract is signed by the client, the monetizer has already
reserved the funds. If the client is unable to send a Swift within this time frame,
then
this
is
not
the
right
program
for
the
client.
4. Question: What types of Banks qualify for the Monetization Program?
Answer: All Top World Banks qualify for the Monetization Program at the highest
LTV's as indicated on the attached flyer. The monetizer will work other Banks
that are not Top Rated at a Lower LTV, usually 60% less 5 % Commissions.
The monetizer will not entertain: Non Rated Banks, Banks located in Venezuela,
Brazil and in the Former Soviet Union. We do have a Monetization Program for
Non-Rated Banks that requires a MT-760 at lower LTV. Please contact us for
details.
5. Question: What is the most important step that is often overlooked?
Answer: The client must be real and not a 'tire-kicker.' The client must be
cooperative and transparent in his/her dealings. The client must be able to
have his/her bank send a MT-760 in the time frame called for in the contract, i.e.
between 2-3 Banking days after the signing of the contract. NO TIME
WASTERS.

Monetize Bank Guarantee, SBLC, MTN

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SPECIAL MONETIZATION PROGRAM FOR

1. Question: What type of Instrument/ Asset qualifies for this Program?

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