Procedures to Purchase Fresh Cut SBLC’s issued by HSBC, London
Owner/Seller of the FC Issued SBLC’s has a large amount of Cash Funds deposited in HSBC, London and DBS, Singapore and has a significant Allocation of SBLC’s to be issued.
Issuing Bank: HSBC, London
Term: One Year and One Day
Backed: Cash Backed
Buyers Banks: Top 25 Publicly Traded Commercial Western European Banks. Also; Top Singapore and US Banks.
Price: 42+2 (1% Sell Side / 1% Buy Side)
Turn Around: From contract delivery of purchased instrument is 48 hours or less.
Detailed Buying Procedures: (subject to change and or some verbiage flexibility)
1) Buyer must first pass compliance before receiving the contract and any type of bank-to-bank transaction can take place.
To Start: buyer provides
CIS or KYC (and passport) of signatory whom is the original earner and owner of the funds.
(BCL) Bank Capability Letter sent directly to the Sellers secure email address and then forwarded to sellers intake officer.
No bank to bank POF can be accepted!
We will arrange a secure way to protect buyers’ information in sending the POF.
2) Upon buyer being approved the buyer will be contacted by seller, and an SBLC instrument will be purchased with the sellers own funds for the buyer. After instrument is purchased, a contract for the exact instrument purchased for the buyer will be delivered to the buyer with full instrument specifics (CUSIP) and sellers’ CIS. Prior to buyer signing the contract, the buyer will have time to verify both the seller and verification that the SBLC instrument does exists and is owned by seller and seller is RWA (Ready, Willing & Able) to deliver the SBLC to the buyer. This “non” bank-to-bank verification of seller and the instrument is the sellers way of going first for the transaction and is proof that the seller is genuine and has the instruments already in their possession to sell you.
Seller will also sell into a Buyer’s Line of Credit provided it has already been activated from another asset owned by the Buyer.
Option 1: Internal Bank Transaction, if the Buyer has funds in Barclays Bank London or HSBC London or Credit Suisse Zurich and DBS Singapore, the transaction can be completed internally. If the Buyer has funds deposited in another top Bank, the Provider may be able to set up an Account at that Bank and settle internally (Ledger to Ledger). The bank takes responsibility of the transaction. This is the safest and most secure possible transaction for both buyer and seller. NOTE: All transaction must start with Buyer passing Sellers Compliance, prior to any bank transaction.
Option 2: After the contract is signed, the Buyers bank will send an MT799 pre-advise, prior to sending an MT103. Bank Officer to Bank Officer communication can also be established at this time. The Seller’s bank will respond with an MT799 RWA, to establish bank responsibility to deliver the instrument. It will include the exact instrument specifics i.e. CUSIP for the SBLC that was already written in the signed contract.
Payment is made by the Buyer by MT 103 Standard Brussels SWIFT.
Instrument is then delivered by MT 760 Standard Brussels SWIFT, with copies sent to the Buyer directly from the Sending Bank Officer.
Same bank-to-bank process for each tranche, until all rolls and extensions are completed.
Seller will deliver the SBLC to the Buyer via MT760 within 48 hours or less to the designated Bank of the Buyer.
If the new SBLC Owner wishes, the approved Asset can be monetized at 70% by the Trade Platform in DBS Bank Singapore, with cash funds deposited in the Owner’s name in his new DBS account. Funds received in 30 days with no obligation to pay off the monetized funds and the Full Face Value of the SBLC is paid to the Owner at time of maturity. The monetized funds can be utilized in any manner the SBLC Owner wishes.