© 2019 by Multistream International Pty. Ltd. 

Corporate One

Level 15, 2 Corporate Court, Bundall

Queensland 4218

TEL: (+61) 0459-208-798

LEASED BANK

INSTRUMENTS - MONETIZATION

ROAD MAP

 
How to Monetize Leased Banking Instruments such as Bank Guarantees (BG) & Standby Letter of Credit (SBLC)

Complete Non-Recourse Monetization for Leased Bank Instruments (BG/SBLC)

We offer 3 types of Bank Instrument (BG/SBLC) Monetization settlement methods:

1. Bank SWIFT - We use the Bank SWIFT Network to have the Bank Guarantee (BG) delivered Bank to Bank using SWIFT MT799 followed by SWIFT MT760.

2. Euroclear - We use the Euroclear Network because the Euroclear settlement process is fast, transparent and uses the Free Euroclear Delivery process so Clients DO NOT incur any SWIFTING FEES or Delays. Euroclear is a well-established European financial transaction settlement network that was founded in 1968 by JP Morgan and continues to operate successfully employing over 3500 people today.

3. DTCC - On some deals we now also accept delivery of the  Leased Bank Guarantees (BG) or Stand by Letter of Credit (SBLC) by DTC also known as DTCC (The Depository Trust & Clearing Corporation). The advantage of DTC is that clients using this process to deliver a Leased Bank Guarantees (BG) DO NOT incur bank SWIFTING FEES. DTC is a well established International business that was founded in 1999 and in 2015 was recorded as settling 1.5 Quadrillion Worldwide making it’s the highest value securities settlement processor in the world.

MULTISTREAM INTERNATIONAL’s Bank Guarantee Monetization services connects you to the World's No.1 Financial Instruments expert and are ideal for clients looking to Discount, Monetize, or create an immediate Non-Recourse loan against a Leased Bank Guarantee (BG) or Stand by Letter of Credit (SBLC) that they control. The Bank Guarantee Monetization process for Leased Bank Instruments issues Non-Recourse funds to the Client shortly after the Bank Instrument is delivered to the Monetizer.

Important: Our contracts also include the monetizer returning the Leased Bank Instrument(BG/SBLC) to the Issuing bank 15 days prior to the Bank Guarantees (BG) expiration. This is a critical requirement of most Leased Bank Guarantee Issuers.

Bank Guarantee Monetization LTV:

  • 10 to 49M Bank Guarantees - 45% to 55% Non Recourse

  • 50M+ Bank Guarantees - 55% to 65% Non Recourse

Estimated Completion Time:
  • 7 to 14 Days after all documents are signed and verified or 3 to 4 Days After Instrument Delivery on the SWIFT or Euroclear Networks.

​Closing Process - SWIFT
  1. After execution of the Bank Instrument Monetization contract by both parties the Client will instruct his bank to send SWIFT MT799 to the bank coordinates provided by the Monetizer.

  2. The Monetizers bank on receipt of the SWIFT MT799 from the clients bank will reply with a SWIFT MT799.

  3. On receipt of the Monetizers bank SWIFT MT799 the Clients bank will deliver the Bank Instrument (BG or SBLC) by SWIFT MT760 to the Monetizers bank.

  4. Upon receipt, confirmation and delivery of the SWIFT MT760 the Bank Instrument Monetizer will within maximum four (4) banking days grant a Non-Recourse Loan for the LTV as agreed from its nominated bank to the Client.

  5. The Bank Guarantee Monetizer agrees to return the Bank Instrument (BG or SBLC) unencumbered fifteen (15) calendar days before the 1 year anniversary of the signed contract between the parties.

 
Closing Process - Euroclear:
  1. After execution of the Bank Guarantee Monetization contract by both parties the Client will instruct his bank to assign the Bank Guarantee (BG) using FREE Euroclear Delivery to the bank coordinates provided by the Monetizer.

  2. The Clients Banker shall immediately email a certified Euroclear execution receipt of the Instrument delivery to the Monetizer.

  3. Upon receipt and confirmation of the Euroclear assignment and delivery, the Bank Guarantee Monetizer will within maximum three (3) banking days grant a Non Recourse Loan for the LTV as agreed from its nominated bank to the Client.

  4. The Bank Guarantee Monetizer agrees to return the Bank Instrument (BG or SBLC) unencumbered fifteen (15) calendar days before the 1 year anniversary of the signed contract between the parties.

Example:

The Bank Guarantee (BG) is issued with a Value of: $100,000,000,000.00

The Bank Guarantee Monetization (BG) is Non Recourse at 65% LTV being: $65,000,000,000.00 

The Client is paid $65,000,000,000.00

Contact Us

Level 15, 2 Corporate Court,
Bundall, Queensland Australia

 info@multistream.com.au  |  Tel: 0459-208-798

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