Leased Standby Letter of Credit (SBLC) Monetization

Leased Standby Letter of Credit Monetization (SBLC)

INSTRUMENT & SERVICE DESCRIPTION:

Complete Non Recourse Loan and Recourse Loan Monetization of Leased Standby Letters of Credit (SBLC)

Our clients are never requested to deposit money with The Man Global “upfront” – we are compensated on the “back end” of the transaction, which means we are paid on “performance”, which is tied directly to the Agreement between Man Global and our client.

We monetize your instruments, by giving you a Loan, that our group is capable to negotiate, through a properly established Facility Provider, a loan that in most cases, you do not need to pay back, or even if you do, it will have a very low interest rate. We arrange for the loans to be issued to one of the Foundations we work with and manage, a Foundation which in turn, gives a loan to the instrument’s owner. It is very straight forward and simple.

We offer 3 Monetization settlement methods:

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1. Euroclear – Euroclear settlement process is fast, transparent and uses the Free Euroclear Delivery process so Clients DO NOT incur any SWIFTING FEES or Delays. Euroclear is a well established European financial transaction settlement network that was founded in 1968 by JP Morgan and continues to operate successfully employing over 3500 people today.

 

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2. Bank SWIFT – Standby Letter of Credit (SBLC) delivered Bank to Bank using SWIFT MT799 followed by SWIFT MT760.

 

Dtcc-logo3. DTCC – We also accept delivery of the Leased Standby Letter of Credit (SBLC) by DTC also known as DTCC (The Depository Trust & Clearing Corporation). The advantage of DTC is that clients using this process to deliver a Leased Standby Letter of Credit (SBLC) DO NOT incur bank SWIFTING FEES. DTC is a well established International business that was founded in 1999 and in 2015 was recorded as settling 1.5 Quadrillion Worldwide making its the highest value securities settlement processor in the world.

Important: Our contracts also include the monetizer returning the Leased Standby Letter of Credit (SBLC) to the Issuing bank 15 days prior to the Standby Letter of Credit (SBLC) expiration. This is a critical requirement of most Leased Standby Letter of Credit (SBLC) Issuers.

Monetization LTV:

  • 5 to 500M Standby Letter of Credit – 45% Non Rated Bank or 65% Rated Bank – Non Recourse Loan
  • 5 to 500M Standby Letter of Credit  – 100% Non Rated Bank or 200% Rated Bank – Recourse Loan with two to seven point five percent (2 to 7.5%) interest rate per annum for a period of up to 10 years with no Libor, preferential for up to 4 years (Bank Instrument have to be block or renew until the duration of the loan).

Note: All Recourse & Non Recourse Loan have a 5% commissions paid out from each loan disbursements.

Estimated Completion Time:

  • 7 to 14 Days after all documents are signed and verified or 5 to 7 Days After Instrument Delivery on the SWIFT, Euroclear or DTCC Networks.

Loan Disbursement:

  1. 21 days after confirmation and authentication of the MT-760, we release first disbursement (20% of the loan).
  2. 30 days after the first disbursement we release the second disbursement (20% of the loan).
  3. The remaining 60% of the loan will be divided in ten (10) month and will be disbursed every 30 days after the second  disbursement.

Notes:

  • Full loan disbursement in 12 month.
  • Monetizers bank can reply with a Bank Confirmation of Payment/Payment Guarantee after the pre-advise has been received for up to 10% of the face value of the Bank Instrument payable in 5 banking days after confirmation and authentication of the MT-760 in case client needs to pay banking processing fees if is necessary.
  • Any payment made on the Bank Confirmation of Payment/Bank Pay Order will be deducted from the first loan disbursement.

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 Brokers & Consultants:

  • Always 100% Protected & Respected
  • Healthy Commissions Paid
  • Be Direct to the Finance Source, NOT in a Broker Chain!

 

 

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 Closing Process – SWIFT
  1. After execution of the monetization contract by both parties the Client will instruct his bank to send SWIFT MT799 to the bank coordinates provided by the Monetizer.
  2. The Monetizers bank on receipt of the SWIFT MT799 from the clients bank will reply with a SWIFT MT799.
  3. On receipt of the Monetizers bank SWIFT MT799 the Clients bank will deliver the Standby Letter of Credit (SBLC) by SWIFT MT760 to the Monetizers bank.
  4. Upon receipt, confirmation and delivery of the SWIFT MT760 the Monetizer will within maximum seven (7) banking days grant a Non Recourse Loan for the LTV as agreed from its nominated bank to the Client.
  5. The Monetizer agrees to return the Standby Letter of Credit (SBLC) unencumbered fifteen (15) calendar days before the 1 year anniversary of the signed contract between the parties.
Closing Process – Euroclear:
  1. After execution of the monetization contract by both parties the Client will instruct his bank to assign the Standby Letter of Credit (SBLC) using FREE Euroclear Delivery to the bank coordinates provided by the Monetizer.
  2. The Clients Banker shall immediately email a certified Euroclear execution receipt of the Standby Letter of Credit (SBLC) delivery to the Monetizer.
  3. Upon receipt and confirmation of the Euroclear assignment and delivery, the Monetizer will within maximum seven (7) banking days grant a Non Recourse Loan for the LTV as agreed from its nominated bank to the Client.
  4. The Monetizer agrees to return the Standby Letter of Credit (SBLC) unencumbered fifteen (15) calendar days before the 1 year anniversary of the signed contract between the parties.

Required Documents:

  1. Download the Bank Instrument Monetization Application Below
  2. Complete all pages of the Bank Instrument Monetization Application and email it to: funding@manvoeurninvestments.com

Compliance Standard:

  1. Accepted Standard: The bank Instrument MUST be from a Rated Bank and Delivered by SWIFT, Euroclear or DTCC.
  2. Rejected Standard: Any Bank Instrument from our Forbidden Assets and Financial Instrument Providers List.