Monetize a Standby Letter of Credit

Description

AltFunds Global can monetize Standby Letters of Credit (SBLCs) that have already been issued by a bank that has a credit rating of A or above.

Qualifications

The minimum amount that AltFunds Global monetizes a funding instrument is ten million ($10,000,000.00) US dollars. The instrument must be:

  • Unencumbered
  • Divisable
  • Monetizable
  • Irrevocable and cash back

Benefits

AltFunds Global assist the client to liquidate the current instrument, and produce net proceeds for the client to use as they see fit.

Process

  1. Participating customers must first schedule a consultation call.
  2. Following the call you will be required to provide the following:
    1. If the SBLC has already been issued:
      • A copy of the SBLC
      • A copy of the bloomsberg report showing the SBLC has been issued and posted on bloomsberg
      • An updated version of our KYC (provided during the consultation call)
    2. If the SBLC has not yet been issued:
      • An email receipt from the issuer of the SBLC
      • An email from the issuer’s banking officer
      • We will then contact the switchboard of the bank and ask to speak to the issuing banking officer for verification
      • Once confirmed, we will provde you with the appropriate paperwork (fee agreement, mutual NDA NCA, etc.)

Paperwork

  • KYC (Know your Client Form) with a copy of the instrument

  • Mutual Non-Disclosure Agreement and Non-Circumvent Agreement (NDA/NCA)

  • Fee agreement for services rendered

  • Deed of agreement

Fees

Our fees are 2.5% of the face value of the instrument.

Commission to brokers

0.5% of the face value of the instrument.

Timelines

We can often execute a contract in 7-10 banking days.

Disclaimer

  • We only work with clients who have an instrument that has already been issued by a bank that has a credit rating of A or above.
  • All clients are welcome are encouraged to bring any business consultant or legal counsel to any of their meetings with  AltFunds Global.
  • The client is fully responsible to cover any legal fees, and tax obligations associated with their transaction.
  • Banking days and timelines may fluctuate based on the market & various banking conditions.

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