Monetization Services 

Monetization of approved bank tnstruments including Letters of Credit (LC), Bank Guarantees (BG), and Standby Letters of Credit (SBLC). 

General Requirements/Preferences:  

 

  1. We will monetize approved Bank Instruments including Letters of Credit (LC), Bank Guarantees (BG), and Standby Letters of Credit (SBLC) per the procedures and notes below.

  2. Bank Instrument Requirements/Guidance:

    1. A-Rated, Top-Tier, Prime Bank Instruments (eg. HSBC, Barclays, Deutsche, etc.)

    2. €100,000,000 Minimum Size (Some exceptions--Please Inquire)

    3. Must be Owned, Operative and Callable.

    4. ALL INSTRUMENTS WILL BE CASHED AT EXPIRY

    5. Issued in Euro as a preference

  3. A complete and current KYC Document. KYCs with missing or incomplete input fields will not be accepted. KYC must include proof of asset may it be the instrument or the associated cash funds.  

 

Top 100 International Banks: https://www.advratings.com/banking/top-100-banks

 

Transaction Procedure:

  1. Requestor executes NDA via e-signature.

  2. Indicative pricing is provided. 

  3. Requestor provides CIS/KYC and all required info plus current Bank RWA.

  4. Monetization Agreement with final pricing signed and executed. 

  5. Sending Bank will send MT-799 to Receiving Bank.

  6. Receiving Bank will respond with MT-799 confirming RWA to receive.

  7. Sender sends MT-760 per acceptable verbiage bank-to-bank.

  8. Within 5 International banking days the SBLC is monetized and disbursed as per requestor instructions.

NOTE: If sending bank wishes to send MT-760 directly and no MT-799, then we can also accept this. [Typically done after Requestor's first transaction]

 

Intake and FAQ Guidance:

  1. We contract directly with Counterparty Asset Owners requesting monetization of their Owned, Operative and Callable Assets that successfully pass compliance and due diligence review.

  2. We cannot monetize leased instruments or instruments "On Loan" to the Applicant.

  3. We do not purchase new-issue BG/SBLC via DOA and we do not fund an Applicant’s DOA acquisition of a new issue BG/SBLC. The Applicant must provide POF for their own asset purchase.      

  4. We do not sign contracts or documents with intermediary brokers or unauthorized beneficiaries.

  5. If the Counterparty Asset Owner requests an intermediary broker commission, the LTV will be adjusted to reflect a Plus 2, split equally to buy-side and sell-side (buy-side is closed). Asset Owners must sign and authorize an IMFPA that includes all participating sell-side reps. Other than coordinating the paperwork, we are not responsible for sell-side brokers in any way, we simply execute the Seller’s written instructions.

  6. Final pricing and terms are provided after completion of Compliance and in the Monetization Contract. All other pricing and terms are to be considered indicative.

  7. RWA Letters that we request are written from the sending bank and addressed to the bank’s client (the owner of the Instrument). It must be verifiable bank-to-bank and only needs to be signed by one bank officer.

  8. The process cannot begin without submitting a current and complete KYC for first-time Applicants. Download a template copy of the KYC for Monetization at https://www.seercompanies.com/downloads

  9. We do not provide RWA letters addressed to unidentified counterparties, or intermediary brokers.

  10. We purchase/monetize Bank LC/BG/SBLC only by monetization procedures in a 5-day performance window. We do not offer DVP or Euroclear procedures for LC/BG/SBLC (DVP/Euroclear settlement is offered for Bank MTN buy/sell only).

  11. Beneficial Owners are accepted if they are officially authorized by the true asset owner. In these cases we will need the Corporate Resolution, or Power of Attorney Documentation that shows the beneficial owner is authorized to execute all documentation, close and settle the transaction and act as signatory for the transaction on the owner’s behalf. Being authorized to “negotiate” the sale or monetization of the asset is not enough. We will also need a complete CIS for the real owner in these circumstances.

  12. We do not monetize instruments from any banks in Brazil, South America, or Russia. We do not monetize Mining, In-Ground, or Hard Assets of any kind. If a Requestor wishes to monetize these type of assets this is only possible by having your bank issue an SBLC against your assets via a Tier 1 correspondent bank.  

 

Special Note to Clients and Prospects. We do not issue BG/SBLC. Further, we advise all clients and prospects to exercise caution in dealing with so called “fresh-cut” DOA type deals. These are substantially fraudulent in our opinion. In any case, we do not get involved with the issuing of BG/SBLC.  

 

.

Monetization Grid.jpg
General BG/SBLC Verbiage.
(PDF Download)   

NOTE: Participating banks will offer final verbiage that is suitable at the time of the transaction