Leased Bank Guarantee (BG) Monetization

NSTRUMENT AND SERVICE DESCRIPTION

Complete Recourse Loan & Non-Recourse Loan Monetization of Leased Bank Guarantee (BG) for Project Funding

Exeter Group offers clients the ability to monetize a Leased Bank Guarantee (BG) to secure funding for their projects. We ensure no upfront fees are required for monetization and are compensated only upon successful project completion. This contractual agreement safeguards our clients’ interests.

Through a Leased Bank Guarantee, we facilitate loan monetization by collaborating with a U.S.-based attorney-trustee office. These loans often require minimal or no repayment, and if repayment is necessary, it is at a highly competitive rate. All client funds are disbursed from an attorney trust IOLTA federal bank account with a legal opinion, ensuring a smooth release of funds without complications from local banks.

There are 4 Monetizations that We Utilize:

1. Euroclear – The Euroclear process is extremely fast, and the best part is there are no SWIFT fees. Euroclear is one of the most established financial transaction networks in the world and was founded by JP Morgan in 1968.

2. Bank SWIFT – This (BG) is delivered between the two banks through SWIFT MT799 and SWIFT MT760.

3. DTCC – The Depository Trust and Clearing Corporation issue BGs that we accept. Again, through this process, there are no SWIFT fees, and this company was founded in 1999 and is seen as one of the leaders in the industry.

4. Bloomberg – The Bloomberg process is extremely fast and there are no SWIFT fees. Bloomberg was founded in 1981 and is one of the most established financial transaction networks in the world.

Important: Our contracts also include the monetizer returning the Leased Bank Guarantee (BG) to the Issuing bank 15 days before the BG expires. This is a typical requirement of BG contracts.

Monetization LTV for a Non-Recourse Loan (this loan have a lower LTV but you don’t have to pay back):

Loan to Value (LTV) for a Leased Bank Guarantee (BG) of 10M to 500M – 65% Non-Recourse Loan with a Rated Bank instrument or 45% Non-Recourse Loan with a Non-Rated Bank instrument.

Monetization LTV for a Recourse Loan:

10M to 500M Leased Bank Guarantee (BG) – 65% Recourse Loan with a Non-Rated Bank instrument or 80% Recourse Loan with a Rated Bank instrument – This loan has an interest between 2% to 7.5% per annum and can span up to ten years in length.

Note: 5 % commission is paid on Non Recourse and Recourse Loans.

How Long Does it Take?

Up to two weeks after the paperwork is completed or a week after the instrument is SWIFT, DTCC, Bloomberg or Euroclear.

Disbursement of Loan:

The loan is disbursed in 12 months.
Once the MT-760 is authenticated, three weeks later 20 percent of the loan will be disbursed.
A month after the original disbursement 20 percent more will be given.
Finally, the last 60 percent of the loan will divide over the ten-month period and will occur monthly.

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SWIFT Closing Process

Once the paperwork is completed, the clients send SWIFT MT799 to the bank to set up the release.
The Monetizer’s bank, after receiving the SWIFT MT799 from the client’s bank, will reply with a SWIFT MT799 RWA to received.
Once the clients’ bank receives the RWA to received the bank instrument, clients send SWIFT MT760 to the monetizer’s bank.
Once these SWIFT MT760 are received and authenticated, the monetizers must respond within a week to grant the non-recourse loan.
At the end of a year, the Monetizer has to return the BG within 15 days of the anniversary of the contract.

Euroclear & Bloomberg Closing Process:

Once the contract is signed, the client will talk to their institution and instructs them to use the Euroclear/Bloomberg Delivery to coordinate the delivery of the BG.
The client’s institution must email a certified receipt of the BG delivery through Euroclear.
Once the receipt is acknowledged the Monetizer has a week to grant the LTV Non-Recourse Loan.
The BG has to be returned no more than 15 days before the contract has been signed for a year.

Documents Required:

Complete the Application for Bank Instrument Monetization
Fill out the Application for Bank Instrument Monetization and email it to [email protected]/exeter

Standards of Compliance:

Accepted Standard: The instrument HAS to be delivered by SWIFT, DTCC, Bloomberg or Euroclear from a Rated Bank.
Rejected Standard: Any Bank Instrument from anyone off of the Forbidden Assets and Financial Instrument Providers List.

Important Information:

Please note that the days are banking days and no weekends or holidays are counted.
- Banking Days & Holidays Calculator
With our bank instruments monetization services, everything is non-negotiable. We will not alter the procedures of this service.
We don’t issue RWA or BCL letter. This tactic is normally used by clients to shop around for a bank Instrument with a provider institution with a banking letter confirming there is a credit line ready to incentive the provider on sending a bank instrument on their behalf. We will never allow this to happen under our company name.

Recourse Loan Disbursements Example (100 Million Euros):

Bank instrument face value: €100,000,000.00
Recourse Loan disbursement (80%): €80,000,000.00
Loan commission fees (5%): €4,000,000.00