Owned Standby Letter of Credit (SBLC) Monetization

SERVICE AND INSTRUMENT DESCRIPTION:

Complete Recourse Loan & Non-Recourse Loan Monetization of Owned Standby Letter of Credit (SBLC) for Project Funding

Exeter Group of Companies LLC specializes in providing flexible funding solutions through the monetization of Owned Standby Letters of Credit (SBLCs). Clients benefit from a no-upfront-fee policy, ensuring compensation occurs only upon project completion. This is secured under a contractual agreement with our clients.

By leveraging an Owned Standby Letter of Credit, Exeter Group offers tailored loans facilitated through negotiations with a trusted attorney-trustee office in the USA. Clients typically benefit from loans that may not require repayment, or if they do, terms include low repayment rates. Funds are disbursed via an attorney-trust IOLTA federal bank account, accompanied by a legal opinion, ensuring smooth transactions with 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: We have two option to purchase the Owned Standby Letter of Credit (SBLC) in its entirety or the client can retain their ownership and take out a non-recourse loan. Most clients want to take the route of the non-recourse loan payment.

The monetizer must return the Owned Standby Letter of Credit (SBLC) to the Issuing bank 15 days before the Standby Letter of Credit (SBLC) expiration.

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 Standby Letter of Credit (SBLC) 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 Standby Letter of Credit (SBLC) – 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.

How Long Does it Take?

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

Steps:

After completing the paperwork, the client sends SWIFT MT799 to the monetizer’s bank to initiate the process.
Upon receipt, the monetizer’s bank will respond with SWIFT MT799 RWA to receive.
Once the client’s bank acknowledges the RWA, the client sends SWIFT MT760 to the monetizer’s bank.
Upon receipt and authentication of the SWIFT MT760, the monetizer has one week to release the non-recourse loan.
At the contract’s one-year mark, the monetizer must return the SBLC within 15 days of the anniversary date.

Euroclear & Bloomberg Closing Process

Steps:

After signing the contract, the client coordinates with their institution to deliver the BG using Euroclear.
The client’s institution emails a certified receipt of BG delivery via Euroclear.
Once the receipt is acknowledged, the monetizer has one week to release the LTV Non-Recourse Loan.
The BG must be returned no later than 15 days before the contract reaches its one-year mark.

Required Documents

Bank Instrument Monetization Application
- Complete the application (Download Below).
- Submit it via email to: [email protected].

Compliance Standard

Accepted Standards: Instruments must be delivered through Euroclear, Bloomberg, DTCC, or SWIFT.
Rejected Standards: Instruments from the Forbidden Assets and Financial Instrument Providers List.

Important Information

Banking Days Only: Weekends and holidays are excluded from all timeframes.
Strict Policy: Exeter Group maintains a non-negotiable stance on monetization procedures.
No RWA or BCL Letters: To avoid misuse, Exeter Group does not issue these letters.

Recourse Loan Disbursement Example

For a €100,000,000.00 SBLC:

Loan Disbursement (80%): €80,000,000.00
Commission Fees (5%): €4,000,000.00

Total Loan Disbursement: €76,000,000.00

Example of Recourse Loan Disbursement Schedule:

Non-Recourse Loan Disbursements Example (100 Million Euros):

Bank instrument face value: €100,000,000.00
Recourse Loan disbursement (65%): €65,000,000.00
Loan commission fees (5%): €3,250,000.00

Total Loan Disbursement: €61,750,000.00