CD/SBLC/BG LEASING PROGRAM
We have the ability to Issue Loaned/Leased instruments; CD's, BG's, SBLC's and DPLCs that are cash-backed from top 25 banks. In order to perform this, you have to be next to an "Applicant" who has a very large balance sheet and the ability to lend out its assets. What makes this collateral so strong is that the instrument will be in the name of the Beneficiary, is fully lienable, collateralizable, callable, transferable & assignable.
Where most deals fall apart is that they require a bank undertaking that says the bank will return the instrument back at maturity, very few banks will do this.
These instruments only require a "Corporate Undertaking" between the Beneficiary and our company. You will not find this any other place in the market. (FOR CLIENT ONLY WANT TO LEASE SEASONED INSTRUMENTS. OUR RATE IS 10+2%).
Minimum of $10 million instrument and no max.
The cost is 20 % for the use of the collateral for one (1) year.
- 4.25% Issuance Fee needs to be shown in Escrow (step 5 below)*
- 1% is released in order to block the cash, create the instrument, assign the ISIN & CUSIP Numbers and place the instrument on DTC/Euroclear.
- Within 5-7 International Banking days, we will have the instrument on screen and all the documentation to provide to client.
- After the information is provided, the 3.25% is then released to us from Escrow.
- In order to and before they can block or move the instrument we will have to have two Irrevocable pay instructions issued corporately and sealed by their bank officer for the pre paid interest for one (1) year.
The procedures are simple:
Send to us via e-mail:
1 – Application with supporting documents to 101access@gmail.com
2 - Proof that they have the issuance fees (bank statement).
3 - $2,500 (Non Refundable Escrow Deposit) will be wired to the escrow attorney.
4 - Letter of Intent: KYC info with bank coordinates where they will want the instrument sent or if they want it blocked for the benefit of XXXXX (name of company) and in favor of XXXXXXXXXXXX (name of company). The Instrument can only be delivered once, so please pay special attention to this.
5 - What they plan on using the instrument for...Loan in place and is it additional collateral etc. Brief breakdown of their transaction and I mean brief (one paragraph)
6 - Escrow and Engagement Agreements will be executed and 4.25% wired to escrow attorney.
7 - We will then sign a contract with you to supply the instrument.
Typical Transaction:
100 M CD, 1 year, from HSBC-London
4.25% issuance fee - could be lower based upon deal size
15.75% in two Irrevocable pay instructions
Here is where you will bog down on the transactions, people do not have the money to do the transaction.
It normally takes 5-7 International Banking from the time we receive the issuance fee.
We prefer to leave the instrument lodged at the issuing bank and block for the transaction.
*Rates, Terms and Procedures are subject to change
