Executive  Summary

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    Bank Guarantee/SBLC For the client's  Loan
    This is a "collateral-first" procedure that is very rare to come by.

    This Offer  will consider any type of project and fund it if the client can meet the criteria set forth. There are no restrictions as to size.

    The minimum loan amount is US$150 Million (the larger the better).

    The “Funding/Lending Source” can be any type of lender, i.e. Hedge Fund, Finance Company, Insurance Company, or other such entity. If the Lending Source is not a nationally or internationally recognized organization, it will have to be approved and must prove its ability to fund. The "bank" or "the funding/lending source's bank" must be a bona fide bank listed in The Bankers' Almanac.

    It has been our experience that if the subsequent procedures are followed exactly in the following order, the transaction will probably be completed with a minimum of problems or frustrations.

    If the client or the banker attempts to change this proven sequence, the entire transaction will become more complicated than necessary and seem confusing, and in all likelihood, will not be successfully completed.

    When first approaching the client's lending bank it is essential that the client addresses a specific sector of the bank. This is generally referred to as; “The Private Banking Sector”, or “The Wealth Management Sector”, the client can also ask for the “International Sector”, which deals with bank instruments. Beware, walking through the front doors of a commercial bank will not get the client to the right sector; usually the sector the client is seeking is in the corporate or divisional office of a bank.

    Once the client finds the right sector and is speaking to the right bank officer, the client's goal is to present himself and the client's project for proper bank approval and underwriting process. First and foremost, the client's lending bank is obliged to follow the rules and regulations of The Patriot Act. The Patriot Act requires all USA banks must first know their clients. All USA bank officials must be constantly on the lookout for any banking transactions which appear to be an attempt to get around the currency reporting requirements, for example, Laundry of Funds.


    1)  First and foremost, the client must absolutely go to his bank and get himself and the project approved without relying on the collateral. The collateral will be provided only as an extra security and as additional collateral or cushion when the bank requests it. Remember, the bank is financing the project, not the BG or the SBLC, therefore the emphasis must be on the project, not the BG or the SBLC.

    2)  Client bank's evaluates the project, goes through the compliance and credit committee and finally the project is underwritten by the client's bank.
    Client's bank gives full approval to fund the project, and as additional security requests from the client a BG/SBLC issued by a "AA" rated Western European or North American Bank. This must be provided in writing by the bank to their own client, see "Approval Letter" sample.


    •  99% of the times, the Client tells his bank that he HAS an instrument, whereas, he does not HAVE an instrument, he can obtain support for his project and an instrument to secure funds that the Bank or Private lender has conditionally committed to his project subject to the client being able to obtain the instrument.
    Of course, the Banker sometimes assumes as much himself, which is why the verbiage of the "Approval Letter" is critical as it demonstrates that the Banker is clear on that point.

    (The instrument is 99% of the time FIRST to either arrive or be on Euroclear etc. but the funds have to be there as a loan, so that the instrument is not hypothecated).

    •  Until this stage, all the KYC and due diligence need to be done by the client's bank on their own client. This funding commitment must be gotten by the client using his and his project’s own strength AND his own close banking relationship. We can not either get involved or assist the client at this stage.
    However, if at this stage the client needs our assistance then a fee will incur as per the level of service requested. The fee will be determined according to the service required from us. The type of service and the related fee amount inquiry may be requested in writing from us.

    3)  Once the client's bank is satisfied and the project is approved for funding- subject to the client providing an extra security in the form of an acceptable collateral- then, and only then, can the transaction move forward. The client must have a letter from his financing bank showing the approval to fund his project and the bank’s willingness to make the loan subject to receiving an additional acceptable security for the L/C, e.g. BG/SBLC/MTN issued by “AA” European or North American bank, see "Approval Letter" sample.

    4)  Once the client's bank has notified the client regarding the approval of the client and the project, the client then sends us the following:
    • The "Approval Letter"
    • Client Information Sheet
    • Passport copy of the principal
    • Corporate resolution
    • 3 to 5 page Executive Summary of the project including a 3-5 year financial overview, cash flow with income and expenses and profit and loss tables, must also include the drawdown schedule.
    • Signed and notarized "Letter Of Understanding" (LOU) (will be provided)
    • FPA for 1% (will be provided)
    5)  Eventually, the bank will issue two letters and send them to our designated bank via swift MT799:

    1. One would state that they stand ready to provide a line of credit against BG/SBLC/MTN to be duly issued by at least  “AA” rated bank to be delivered to them via MT760. Furthermore this line of credit would be forwarded to our designated bank (in Europe or North America).
    1. The other would state that the funds would be sent  IMMEDIATELY, via MT103 upon receipt, verification and authentication of the BG/SBLC/MTN.
    6)  After the client's bank has executed the above mentioned 2 Letters, the bankers will contact one another and arrange all of the pertinent details for the delivery of the instrument.

    7)  After the collateral has been sent as agreed, and the transfers have been honored, the transaction will have been completed and the client's bank will be released from any further obligation
                    The transfers  will be as follows:
                   For Transactions up to $499 Million:
       94% to collateral provider
       The remaining amount is for the Lending bank's fees and interest.
     For Transactions $500 Million and up:
        90% to collateral provider
       The remaining amount is for the Lending bank's fees and interest.

    How the project gets funded

    The Funding Group is to fund the project on the basis of  equity participation, therefore the project will be fully funded and will have no debt burden or any loan repayments to make,  thus the project will be free and clear from any debts from day one. A buy-out (exit clause) may be negotiated and agreed to at the signing of the funding and ownership contracts.

    The Funding Group, through their local major handling firms of accounts and attorneys, will remit the funds according to an agreed to schedule with the client until the project is completely funded.

         All terms are negotiable.

    Important Notes

    The instrument is made out to the client's bank (or in some cases assigned to it).

    The instrument would be for one (1) year, callable at maturity

    The instrument is 100% cash-backed only.

    The funds are exchanged for the collateral (collateral first) and the Funding Group takes on the obligation of funding the project

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