Instrument Monetization
We offer complete Non-Recourse Monetisation for Leased Bank Instruments (BG/SBLC) from Top Western Banks:
The Evergreen Trading BG/SBLC Monetization program offers access to Financial Bank Instrument experts, catering to clients seeking to Discount, Monetize, or obtain an immediate Non-Recourse loan against a Leased Bank Guarantee (BG) or Standby Letter of Credit (SBLC) under their control. Monetizing a Bank Guarantee involves converting it into Non-Recourse funds shortly after the Bank Instrument is delivered to the Monetizer.
Estimated Completion Time:
7 to 14 Days after all documents are signed and verified, or 3 to 4 Days After Instrument Delivery on the SWIFT or Euroclear Networks.
- Upon both parties executing the Bank Instrument Monetization contract, the Client directs their bank to send SWIFT MT799 to the provided bank coordinates by the Monetizer.
- The Monetizer’s bank responds to the SWIFT MT799 from the client’s bank with a SWIFT MT799.
- Upon receiving the Monetizer’s bank SWIFT MT799, the Client’s bank sends the Bank Instrument (BG or SBLC) via SWIFT MT760 to the Monetizer’s bank.
- Following the receipt, confirmation, and delivery of the SWIFT MT760, the Bank Instrument Monetizer will, within a maximum of four (4) banking days, provide a Non-Recourse Loan for the agreed Loan to Value (LTV) from its nominated bank to the Client.
- The Bank Guarantee Monetizer commits to returning the Bank Instrument (BG or SBLC) unencumbered fifteen (15) calendar days before the 1st anniversary of the signed contract between the parties.
Closing Process via EuroClear:
- Upon both parties executing the Bank Guarantee Monetization contract, the Client instructs their bank to transfer the Bank Guarantee (BG) using FREE Euroclear Delivery to the bank coordinates provided by the Monetizer.
- The Client’s Banker promptly emails a certified Euroclear execution receipt of the Instrument delivery to the Monetizer.
- Upon receiving and confirming the Euroclear assignment and delivery, the Bank Guarantee Monetizer will, within a maximum of three (3) banking days, provide a Non-Recourse Loan for the agreed Loan to Value (LTV) from its nominated bank to the Client.
- The Bank Guarantee Monetizer commits to returning the Bank Instrument (BG or SBLC) unencumbered fifteen (15) calendar days before the 1st anniversary of the signed contract between the parties.
Example:
The Bank Guarantee (BG) is issued with a Value of $100,000,000,000.00
The Bank Guarantee Monetization (BG) is Non-Recourse up to 65% LTV, which amounts to: $65,000,000,000.00
Note: Our contracts also stipulate the monetizer’s obligation to return the Leased Bank Instrument (BG/SBLC) to the Issuing bank 15 days prior to the Bank Guarantee’s (BG) expiration. This requirement is critical for most Leased Bank Guarantee Issuers. Bank Guarantee Monetization LTV:
- Bank Guarantees of 10 to 49M – 40% to 65% Non-Recourse
- Bank Guarantees of 50M+ – 65% to 80% Full Recourse