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Monetisation| LC Discounting

Monetization Information

Through our network of Bank Guarantee Issuers and financial services providers, Citi Trade Finance are able to Issue and monetize Guarantees and Standby L/Cs for credit line and monetization facilities.

Offering up to 90% of security value, with interest only charges due yearly. Our Lender banks can offer non-recourse credit lines facilities up to 96 months.

Guaranteed fast completion process and interest only rates from 03.00% per 12 month period.

Bank Instruments such as Letters of Credit, Standby L/Cs and Bank Guarantees are frequently used as a collateral by the Lender banks to act as Collateral security, to process monetization.

Whilst these ‘instruments’ are utilized in conventional trading on a day to day basis, they can also be employed in complex financial structures designed to maximize financial positions and bespoke to each individual requirement.

We have a Global network that specializes in Monetization of almost any type of Bank or Financial Instrument worldwide from 2 Million to 2 Billion of USD/Euros.

MONETIZATION

Summary of Process

Upon successful checks of client’s compliance documents; company information.

Citi Trade Finance will enter agreement with Client and Lender bank to setup a Credit Facility account for Client. The Credit Facility will be  setup in favour or Client; to receive and monetize Client’s Bank Guarantee, which acts as collateral required to secure the Credit Facility.

Terms of the Monetized funds; Lending terms will be communicated to Client by Lender bank via
Lender Bank’s Commitment Letter, in line with the terms and conditions of the Monetization/Non-Recourse Loan Agreement.

Closing Process – SWIFT

After execution of the Bank Guarantee Monetization contract by both parties; and fulfilment of all obligations by Client. The Lender Bank will be ready to communicate via SWIFT with Client’s Issuer bank.

  • Client will instruct his bank to send SWIFT MT799 to the bank coordinates provided by the Monetizer.
  • The Monetizer/Lender bank on receipt of the SWIFT MT799 from the Client’s bank will reply with a SWIFT MT799.
  • On receipt of the Monetizer’s bank SWIFT MT799 the Clients bank will deliver the Bank Guarantee (BG) by SWIFT MT760 to the Monetizers bank.
  • Upon receipt, confirmation and delivery of the SWIFT MT760 the Monetizer will within maximum four (4) banking days grant a Non-Recourse Loan for the LTV as agreed from its nominated bank to the Client.
  • The Monetizer agrees to return the Bank Guarantee (BG) unencumbered fifteen (15) calendar days before the 1 year anniversary of the signed contract between the parties.

Complete Monetization Procedure and our process can be requested from our support team.

Monetization Brochure

Monetization Brochure and Application for Loan can be obtained by contacting our support team.

Provide bank instrument monetization

In order to monetise a SBLC (SBLC Monetisation) you must be in possession of the instrument and it must be paid for prior to monetizing (Prior to requesting monetisation).

Citi Trade Finance Investments has developed relationships with some of the Top 25 AAA+ rated banks in the world to Monetise Bank Instruments for clients worldwide by arranging the monetisation against owned bank instruments such as BG’s (Bank Guarantees), LOC’s (Letter of Credit), SBLC’s (Standby Letter of Credit), CD’s (Certificate of Deposit), DPLC’s (Direct Pay Letter of Credit) and other banking and financial instruments.

This form of financing can be used in combination with our cash backed stand by letter of credit (SBLC) or Bank Guarantee (BG) Program in order to monetise the newly created document to obtain the right funds for project financing.

Monetising bank instruments is the process of liquidating such instruments by converting them into legal tender. We can monetise or lend on just about any bank instrument to be used for project funding, move them into various trading platforms quickly and easily, as well as creatively incorporating them into financing certain development projects. We can monetise CD’s, SBLC’s, DPLC’s, BG’s and MTN’s. This can be accomplished in 5-14 business days.

Monetising a SBLC or stand by letter of credit is becoming rather common and can be done in as little as 4-7 days.  Many people refer to this as SBLC funding or SBLC financing since you are essentially obtaining cash on the basis of the SBLC or bank guarantee.

This process allows you to:

  1. Monetize instruments for cash
  2. Monetize instruments for buy/sell platform entry
  3. Monetize instruments for both cash and buy/sell platform entry
  4. SBLC Monetising Program Highlights
  5. $50 Million to $2 Billion USD or EUR
  6. The letter must be from an A or AA rated bank.
  7. Must contain the following 5 phrases:  ”Irrevocable”, “divisible”, “transferable”, “assignable” and “unrestricted”.
  8. 1-3 year term
  9. Interest only loan
  10. 300-450 basis pts over prime rate
  11. Bank fees apply
  12. 1-3% of advanced amount required to be as proof of funds as verified by a bank officer.
  13. 5-8 day closing
  14. 85-97% of face value advance
  15. SBLC/BG $50 Million and above Program Highlights
  16. The letter must be from an A or AA rated bank.
  17. Must contain the following 5 phrases:  ”Irrevocable”, “divisible”, “transferable”, “assignable” and “unrestricted”.
  18. 1-3 year term
  19. Interest only loan
  20. 300-450 basis pts over prime rate
  21. Bank fees apply
  22. $30-50k required to be as proof of funds as verified by a bank officer.
  23. 5-8 day closing
  24. 75-90% of face value advance

Case Study-SBLC Monetising or SBLC Monetisation:

If you lease a Bank Guarantee or SBLC we can help. In this case study the client needs $25,000,000 to secure the purchase of land needed for a project. Client has a Cash Backed SBLC from Deutsche Bank, an AA rated bank. Client submits SBLC for monetisation and gets 95% of the SBLC’s face value minus bank fees.k. Terms: 2 year, interest only, 4.00%. Closing time: 10 days.