Import-export and sourcing Africa, China, South-East Asia, South America and Europe
Bank Instruments as primary collateral
Please review this and get back to me with any questions.
We have the ability to contract for the issuance of cash backed certificates of deposit, bank guarantees and standby letters of credit to be issued by globally recognized banks.
These instruments are strong due to the fact that they are issued in the name of our client as beneficiary and are fully lienable, callable, transferable and assignable which allow them to be used as primary collateral for a credit facility and/or transaction.
Most instrument transactions fall apart because the bank instruments are leased. The issuing bank and/or lessor require the client's bank to undertake to return the instrument on a certain date. This is the only way a leased instrument can be used, however very few banks will do this. Since leased assets are not practical, we have created a exclusive method of collateral infusion in which the instruments only require a corporate undertaking to return or repay the instrument on a certain date between the beneficiary and our company. You will not find this type of product any other place in the market today.
The minimum instrument we issue is Fifty Million United States Dollars. Attached are the procedures, pricing, and application effective October 13th 2009.
Use of Instruments: The Client/ Beneficiary has the ability to participate in any legal financial transaction with the bank debt instrument provided through us. The bank instrument may be used as the only, primary, or as a secondary source of collateral. It is agreed that the bank debt instrument can be monetized directly by the beneficiary or an assignee, designated by the beneficiary.
Issuance Pricing: $50MM min. 10% Collateral Price; 3% issuance fee
Instrument Types:
1. Standby Letters of Credit (SBLC)
2. Bank Guarantees (BG)
3. Certificates of Deposit (CD)
4. Reserved and Blocked Funds - Cash Collateral Accounts (CCA)
You are welcomed to call us to discuss and visit our offices if you wish. We also have a compensation package we can offer to consultants, intermediaries, deal-makers, attorneys and accountants who refer business we close.
