Procedures to Purchase Fresh Cut MTN's issued by HSBC, London
Owner/Seller of the MTN's with ISIN has a large amount of Cash Funds deposited in HSBC UK Bank and DBS Bank Singapore and has a significant allocation of MTN's.
Issuing Bank: HSBC, London
Term: Ten Years
Coupon: Min. 6%
Currency: Euros
Backed: Cash Backed
Buyers Banks: Top 25 Western Banks. Also; top Asian banks in Hong Kong, Singapore and BOC Beijing Branch, only
Fresh Cut MTN 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 engaging with seller and receiving the contract and any type of bank-to-bank transaction can take place.
To Start:
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Buyer provides CIS or KYC (and passport)
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Buyer sends BCL directly to sellers secure email address.
No bank to bank POF can be accepted!
We will arrange a secure way to protect buyers’ information in sending the POF.
2) POF is verified by email authentication. Please ask for simple procedure.
3) When buyer is approved the seller will contact the buyer, and an MTN instrument will be freshly cut from the sellers HSBC Allocations. After instrument is purchased, a contract for the exact instrument purchased for the buyer will be delivered to the buyer with full instrument specifics and sellers’ KYC. Prior to buyer signing the contract, the buyer will have time to verify both the seller and verification that the MTN instrument does exists and is owned by seller and seller is RWA (Ready, Willing & Able) to sell 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 proves that the seller is genuine and has the instruments already in their possession to sell the buyer.
Seller will also sell into a Buyer’s Line of Credit provided it has already been activated from another asset owned by the Buyer.
TRANSACTION OPTIONS
Option 1: Instantaneous Brussels Euroclear transaction.
Option 2, The seller works with their own money inside both HSBC, London and DBS, Singapore. If buyers bank is either HSBC, London or DBS, Singapore or Credit Suisse, Zurich or Barclays, London and internal bank transfer (ledger to ledger) is possible. The bank takes responsibility of the transaction. This is the safest and most secure possible transaction for both buyer and seller.
Option 3:
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 / ISIN for the S.S. MTN that was already written in the signed contract.
Swift will be sent by Standard Brussels Swift, and the generated copies will be sent to the buyer directly from the sending bank officer.
Payment is made by the buyer by MT103 Standard Brussels Swift.
Seller will deliver the MTNs to the Buyer via Brussels Euroclear DVP or Bank to Bank via SWIFT.
Same bank-to-bank process for each tranche, until all rolls and extensions are completed.