Owned Standby Letter of Credit (SBLC) Monetization

SERVICE AND INSTRUMENT DESCRIPTION:

Complete Recourse Loan & Non-Recourse Loan Monetization of Owned Standby Letter of Credit (SBLC) for the intention of Project Funding.

We never require our clients to pay upfront fees for monetization and are only compensated when a project is completed. This is the agreement that we contractually have with our clients and AG Finance TradeXpert.

Through an Owned Standby Letter of Credit, we can monetize this and provide you with a loan, through careful negotiations with an attorney-trustee office in the USA. This is a loan that you will very seldom have to pay back, and if you do end up having payments, they will be at a low rate. our clients will receive their funds from an attorney trust IOLTA federal bank account with a legal opinion so our clients won’t have to deal with problems on the release of their funds with their local banks.

There are 4 Monetizations that We Utilize:

1. Euroclear – The Euroclear process is extremely fast, and the best part is there are no SWIFT fees. Euroclear is one of the most established financial transaction networks in the world and was founded by JP Morgan in 1968.

2. Bank SWIFT – This (BG) is delivered between the two banks through SWIFT MT799 and SWIFT MT760.

3. DTCC – The Depository Trust and Clearing Corporation issue BGs that we accept. Again, through this process, there are no SWIFT fees, and this company was founded in 1999 and is seen as one of the leaders in the industry.

4. Bloomberg – The Bloomberg process is extremely fast and there are no SWIFT fees. Bloomberg was founded in 1981 and is one of the most established financial transaction networks in the world.

Important: We have two option to purchase the Owned Standby Letter of Credit (SBLC) in its entirety or the client can retain their ownership and take out a non-recourse loan. Most clients want to take the route of the non-recourse loan payment.

The monetizer must return the Owned Standby Letter of Credit (SBLC) to the Issuing bank 15 days before the Standby Letter of Credit (SBLC) expiration.

Monetization LTV for a Non-Recourse Loan (this loan have a lower LTV but you don’t have to pay back):

Loan to Value (LTV) for an Owned Standby Letter of Credit (SBLC) of 10M to 500M – 65% Non-Recourse Loan with a Rated Bank instrument or 45% Non-Recourse Loan with a Non-Rated Bank instrument.

Monetization LTV for a Recourse Loan:

10M to 500M Owned Standby Letter of Credit (SBLC) – 65% Recourse Loan with a Non-Rated Bank instrument or 80% Recourse Loan with a Rated Bank instrument – This loan has an interest between 2% to 7.5% per annum and can span up to ten years in length.

How Long Does it Take?

Up to two weeks after the paperwork is completed or a week after the instrument is SWIFT, DTCC, or Euroclear.

Disbursement of Loan:

The loan is disbursed in 12 months.
Once the MT-760 is authenticated, three weeks later 20 percent of the loan will be disbursed.
A month after the original disbursement 20 percent more will be given.
Finally, the last 60 percent of the loan will divide over the ten month period and will occur monthly.

Become An
AG Finance TradeXpert
Broker Today!

SWIFT Closing Process

Once the paperwork is completed, the client’s sends SWIFT MT799 to the bank to set up the release.
The Monetizer’s bank, after receiving the SWIFT MT799 from the client’s bank, will reply with a SWIFT MT799 RWA to received.
Once the client’s bank receives the RWA to received the bank instrument, client’s sends SWIFT MT760 to monetizer’s bank.
Once these SWIFT MT760 are received and authenticated, the monetizer’s must respond within a week to grant the non-recourse loan.
At the end of a year, the Monetizer has to return the SBLC within 15 days of the anniversary of the contract.

Euroclear & Bloomberg Closing Process:

Once the contract is signed, the client will talk to their institution and instructs them to use the Euroclear Delivery to coordinate the delivery of the BG.
The client’s institution must email a certified receipt of the BG delivery through Euroclear.
Once the receipt is acknowledged the Monetizer has a week to grant the LTV Non-Recourse Loan.
The BG has to be returned no more than 15 days before the contract has been signed for a year.

Required Documents:

Fill out the Bank Instrument Monetization Application (Download Below)
Complete the Bank Instrument Monetization Application and email it to: [email protected]

Compliance Standard:

Accepted Standard: MUST be delivered by Euroclear, Bloomberg, DTCC, or SWIFT.
Rejected Standard: Bank Instruments from the Forbidden Assets and Financial Instrument Providers List.

Important Information:

Please note that the days are banking days and no weekends or holidays are counted.
- Banking Days & Holidays Calculator
With our bank instruments monetization services, everything is non-negotiable. We will not alter the procedures of this service.
We don’t issue RWA or BCL letter. This tactic is normally used by clients to shop around for a bank Instrument with a provider institution with a banking letter confirming there is a credit line ready to incentive the provider on sending a bank instrument on their behalf. We will never allow this to happen under our company name.

Recourse Loan Disbursements Example (100 Million Euros):

Bank instrument face value: €100,000,000.00
Recourse Loan disbursement (80%): €80,000,000.00
Loan commission fees (5%): €4,000,000.00

Total Loan Disbursement: €76,000,000.00

Example of Recourse Loan Disbursement Schedule:

Non-Recourse Loan Disbursements Example (100 Million Euros):

Bank instrument face value: €100,000,000.00
Recourse Loan disbursement (65%): €65,000,000.00
Loan commission fees (5%): €3,250,000.00

Total Loan Disbursement: €61,750,000.00