Procedures To Monetize SBLC, MTN for Trade
Below are the expected LTV and returns
(This will be confirmed in the DOA as this depends on various factors)
1. LTV (Loan To Value) of monetized instrument (SBLC/MTN) from a Top Bank is 80% BG is at 70%.
2. 2x 10-day bullets at 50-100% each (20 days 100-200% of LTV) *see note at bottom of page
3. 2x 30-day bullets at 200-300% each (60 days 400-600% of LTV)
4. 40 weeks at 50% a week (of LTV)
5. 65% net to client, 35% to trader, platform and all consultant fees.
Procedures:
• Require a full KYC (corporate or personal) of the actual owner/title holder of the SBLC/MTN (instrument) as they are the only person that can legally enter the instrument into trade. If the instrument has been issued we will need supporting documentation, ISIN numbers, coupon, Euroclear document (if the instrument is on euroclear) etc.
• Once Due Diligence has been passed and client accepts the offer a DOA will be presented for the client to fill in, sign and send back, along with an IMFPA (Fee Agreement) for the client and each broker/consultant group to fill in with their paymaster details.
• First the IMFPA needs to be completed and sent back to the trader.
• The trader will countersign the IMFPA and send it back to the client and individual broker group, this will ensure that the trader will pay each individual party. Each broker/consultant group will need to have separate fee agreements for members of their own party.
• The trader will countersign the DOA and send the client/signatory a fully executed copy.
• After the instrument details have been presented the monetizer coordinates will be given with swift instructions and accepted verbiage (this is also in the DOA as a draft).
• The client follows the swift instructions, the instrument must be sent via BRUSSELS SWIFT MT760, or Euroclear delivery if it is listed on Euroclear to the monetizers coordinates (all fees paid by client). Monetizer can also receive the BG delivery via MT110 with hard copy.
• The Monetizer will monetize the instrument within 3 banking days and send to trader
• The Trader arranges and guarantees the lines of credit based on the monetization.
• The trader will start the trade within 24 hours of receiving funds from the monetizer on the following Monday.
• The proceeds of the trade will be paid out as per the DOA and to the banking coordinates in the IMFPA.
*Please Note: 80% of the profit for the first 10 day bullet has to be used for a project or several projects now or in the future. These Projects must be declared during compliance. NO ties to any project for all subsequent profits (only the first bullet).