SBLC for Euro 600 Million to 3B + or more from any one of the top banks like
HSBC – Barclays – City Bank – JP Morgan – VP Bank etc.. are all required for
monetization. A list of top banks is available on request.
1. The Client will send us a complete KYC pack with full banking coordinates.
If the SBLC is already issued:
2. The Client will send copies of original SBLC and also ATV to verify on Bank to Bank basis. The SBLC owner must be willing to re-assign the bank instrument in favor of the monetizing group backed by MT760. LTV for non-recourse monetization might reach even 65% of its face value [subject to confirmation, verification and if it is originating from a top AAA rated bank].
If the SBLC is yet to be issued:
3. If the SBLC is not issued as yet, then the clients SBLC issuing bank will send a free message MT199 to the designated bank of the monetizer as per desired verbiage. We will need a free message MT199 direct from the issuing bank sent to our designated bank confirming that it is RWA to issue MT760 within the next 3 to 5 banking days. Then we can issue a contract and offer an agreed percentage of the issued bank instrument.
4. The Monetizer’s Bank will then reply by MT 199 that it will accept the SBLC
or bank guarantee and follow instructions of the monetizer as explained in the
DOA after positive verification of the bank instrument.
5. The Client will then send the SBLC in favor of the Monetizer and Swift MT
760 to the designated bank account of the Monetizer. The Issuing Bank will
also post the hard copy of the Bank draft to the Monetizing bank by bank
6. After positive verification of the SBLC,the Monetizer’s Bank will follow
instructions of the monetizer as explained in the DOA and might remit the
agreed amount to the designated bank account of The Client by Swift MT 103.
7. At the same time commission will be paid to all named intermediaries as
mentioned in the DOA. Payments of the monetized amount might be made as follows :
1. If this is a leased bank instrument, then the LTV might only be 45 to 70%
[minus the agreed commission] [Note: LTV changes with issuing bank & face
value of the instrument]
2. If they own the SBLC and want to sell it then the client might get 70 – 80%
[minus the agreed commission]
3. If the client wants to put the monetized amount on trade, the trader might offer 70% [minus the agreed commission] and put the monetized amount on trade. A separate trade agreement sent by the trader will spell what they might earn from such trade.
4. Pay out might be in three installments:
10% of the agreed LTV within first 10 days after positive verification of
MT760, 40% of the agreed LTV within next 10 days. Balance 50% in the last
10 days – total pay-out within 30 days. OR Total payment can be made in one
go after 30-40 days.