Owned Bank Guarantee (BG) Monetization

INSTRUMENT AND SERVICE DESCRIPTION

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

At Exeter Group, we do not require clients to pay upfront fees for monetization. Compensation is only due upon successful project completion. This commitment is contractually established between our clients and Exeter Group.

By utilizing an Owned Bank Guarantee, we facilitate monetization and provide loans through meticulous arrangements with an attorney-trustee office based in the USA. These loans are structured in a way that repayment is rarely required, and when applicable, they are offered at minimal interest rates.

Clients receive their funds directly from an attorney-trust IOLTA federal bank account, accompanied by a legal opinion. This ensures smooth transactions and eliminates any complications related to fund releases through local banks.

We offer 4 Monetization settlement methods:

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 to 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.

Fact: We have the option of purchasing the BG in full, or the client can hold ownership against an Owned Bank Guarantee. Many clients choose the latter option so that they can have a non-recourse loan.

Through our contractual obligations, the Monetizer must return the Owned Bank Guarantee to the issuing institution at least 15 days before the expiration date of the BG.

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 an Owned 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 Owned 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 Will it Take?

Up to two weeks after the paperwork is completed or a week after the instrument is SWIFT delivered.

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

Initiation: Once the paperwork is finalized, the client’s bank sends a SWIFT MT799 message to the monetizer’s bank to initiate the release process.
Acknowledgment: The monetizer’s bank, upon receiving the SWIFT MT799, responds with a SWIFT MT799 RWA (Ready, Willing, and Able) message.
Transfer: After receiving the RWA confirmation, the client’s bank sends a SWIFT MT760 to the monetizer’s bank.
Loan Grant: Upon authentication of the SWIFT MT760, the monetizer must grant the non-recourse loan within one week.
Return of BG: At the end of the contract year, the monetizer must return the Bank Guarantee (BG) within 15 days of the contract anniversary.

Euroclear & Bloomberg Closing Process

Coordination: After signing the contract, the client instructs their institution to utilize Euroclear for BG delivery.
Receipt Submission: The client’s institution emails a certified receipt of the BG delivery through Euroclear.
Loan Grant: Once the receipt is acknowledged, the monetizer has one week to issue the LTV Non-Recourse Loan.
Return of BG: The BG must be returned no later than 15 days before the contract anniversary.

Required Documents

Bank Instrument Monetization Application:
- Download the application.
- Complete and email it to: [email protected].

Compliance Standard

Accepted Standards: The Bank Instrument must be from a rated bank and delivered via SWIFT, Euroclear, Bloomberg, or DTCC.
Rejected Standards: Any instrument listed under the Forbidden Assets and Financial Instrument Providers List.

Important Information

Banking Days: Only business days are counted, excluding weekends and holidays. Use a Banking Days & Holidays Calculator for reference.
Non-Negotiable Procedures: Exeter Group maintains strict adherence to procedures and does not allow modifications.
No RWA or BCL Letters: We do not issue RWA or BCL letters to prevent misuse for shopping financial instruments.