30 Jul Bank Financial Instruments Monetization
Bank Financial Instruments Monetization
What Is Bank Financial Instruments Monetization & How Do You Monetize Bank Instruments?
Bank Financial Instruments Monetization is the process of liquidating bank instrument by converting them into cash or legal tender. We can monetize or lend on 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 monetize CD’s, SBLC’s, BG’s and MTN’s. This can be accomplished in 10-60 business days.
To monetize a Bank Instrument, you must be in possession of the instrument, and it must be verified before monetizing.
Grand City Investment Limited has developed relationships with some of the Top banks in the world to Monetize Bank Instruments for clients worldwide by arranging the monetization against owned bank instruments such as BG’s (Bank Guarantees), SBLC’s (Standby Letter of Credit), CD’s (Certificate of Deposit), and other banking and financial instruments.
This form of financing can be used in combination with our cash backed standby letter of credit (SBLC) or Bank Guarantee (BG) Program to monetize the newly created document to obtain the right funds for project financing.
Monetizing an SBLC or standby letter of credit is becoming common and can be done in as little as 15 days. Many people refer to this as SBLC funding or SBLC financing since you are obtaining cash by the SBLC or bank guarantee. This process allows you to: A:Monetize instruments for cash B: Monetize instruments for buy/sell platform entry.
As monetizers of bank instruments, we offer Monetization of Bank Instruments such as BG and SBLC @ 80% LTV which is one of the highest in the industry.
Financial Instruments For Project And Trade Finance
It is a fact that it is difficult to acquire a Bank Guarantee or SBLC without a financial commitment. But you are 100% exposed to failure when you pay via escrow or cash directly to uncertified BG / SBLC provider, who might issue to your Monetizer a cloned financial instrument that will be rejected after you have committed your hard-earned cash.
This is why it is very important that you choose Grand City Investment Limited as your genuine financial instrument providers and monetizers of bank instruments.
As genuine financial instrument providers, we can offer a Performance Bond against your promissory note to guarantee performance. The best part of it is that your promissory note don’t have to be active until our Performance Bond is received by your bank. As your PN validity is 60 banking days, you can cancel the promissory note after 35 banking days upon our failure to release to you the first disbursement of fund.
While Grand City Investment Limited has decades of experience and unparalleled expertise across the entire range of trade finance, project finance, and commodity finance products we offer, nowhere are our experience and innovation more evident than in Monetization. There is no better partner for monetizing bank instruments in the world than Grand City Investment Limited.
We monetize an expansive range of bank instruments effectively and precisely and usually within 35 banking days, and all with a transparency you’ll find refreshing. We have decades of experience monetizing bank instruments. We can monetize owned or leased bank instruments, leased bg bank guarantee, hsbc sblc etc.
If you’re ready to monetize your bank instruments, submit a request for Funding and get your deal financed or continue learning about bank instrument monetization below.
Bank Financial Instruments Monetization Services
Monetizing bank instruments is the process of liquidating bank instruments by converting them into cash. We monetize Bank Guarantees (BG’s), Stand-By Letters of Credit (SBLC or SLOC), Bank Draft, Medium Term Notes (MTN’s) and some Long Term Note (LTN) for our clients. To monetize a bank instrument you must be in possession of the BG, SBLC, Bank Draft, MTN or LTN.
Bank Instrument Monetization is a low-cost, low-risk method of project or trade finance that monetizes inactive financial instruments by converting them into cash or cash equivalent by liquidating the instruments.
Monetization is quick, easy and is accomplishable using a wide range of financial instruments such as bonds and bank guarantees, to name but a few. Monetization converts unused assets into cash which can then be used to fund imports, exports, projects and international trade transactions, so there is very little actual cost and only limited opportunity cost because the assets were disused.
We monetize your instruments, by giving you a Loan, that our group is capable to negotiate, through a properly established Facility Provider, a loan that in most cases, you do not need to pay back, or even if you do, it will have a very low interest rate. We arrange for the loans to be issued to one of the Foundations in USA we work with and manage, a Foundation which in turn, gives a loan to the instrument’s owner. It is very straight forward and simple.
Our financial instrument monetization expertise, when coupled with an impressive list of strategic partners, ideally positions Grand City Investment Limited to monetize financial instruments anywhere in the world at very attractive pricing.
This is a partial list of the types of financial instruments we can monetize.
- Promissory Note
- Municipal Bonds
- Treasury Bonds
- Treasury Bills
- Bearer Bonds
- Certificates of Deposit
- Letters of Credit
- Standby Letter of Credit
- Bank Guarantee
Bank Financial Instruments Monetization Terms
We monetize financial instruments through our individual, corporate, private and institutional lenders, including investment banks, merchant banks, private international banks, trusts, and other lending institutions. In so doing, we never have to rely on brokers as a source of funding. That means we serve our clients directly. It also results in lower cost monetization for imports and more responsive turnaround time for clients. We perform quickly and precisely and offer reasonable terms and pricing for monetization services. Our Standard Monetization Terms are listed below.
Standard Bank Financial Instruments Monetization Terms
- Financial Instruments to be monetized can be owned or leased
- We prefer monetization transactions of $10 million or more, but we will accept transactions as low as $5 million transaction amount
- Transaction turnaround time normally 35 working days or less
- Exceptions can be made to minimum transaction
- Brokers and intermediaries must have a legally binding agreement
- In brokers and intermediary transactions, contact to be between principals after initial introduction
Bank Financial Instruments Monetization Process
Complete Recourse Loan & Non-Recourse Loan Monetization of Leased Bank Guarantee (BG) for the intention of Project Funding.
We issue bg, dlc and sblc from world class banks such as Citibank New York, Chase Bank, Welsfargo Bank, Bank of America, Credit Suisse, Barclays bank London, HSBC Hong Kong or HSBC London, Standard Chartered Bank London, Dubai or Hong Kong, UBS Switzerland, Deutsche Bank AG Germany or any prime bank of choice.
There are 4 Monetizations that We Utilize:
1. Euroclear – The Euroclear process is extremely fast, and the best part is there are no SWIFT fees. Euroclear is one of the most established financial transaction networks in the world and was founded by JP Morgan in 1968.
2. Bank SWIFT – This (BG) is delivered between the two banks through SWIFT MT799 and SWIFT MT760.
3. DTCC – The Depository Trust and Clearing Corporation issues BGs that we accept. Again, through this process, there are no SWIFT fees, and this company was founded in 1999 and is seen as one of the leaders in the industry.
4. Bloomberg – The Bloomberg process is extremely fast and there is no SWIFT fees. Bloomberg was founded in 1981 and is one of the most established financial transaction networks in the world.
What Is The LTV?
Monetization LTV for a Non-Recourse Loan:
- Loan to Value (LTV) for a Leased Bank Guarantee (BG) of 5 to 500M – 65% Non-Recourse Loan with a Rated Bank instrument or 45% Non-Recourse Loan with a Non-Rated Bank instrument.
Monetization LTV for a Recourse Loan:
- 5 to 500M Leased Bank Guarantee (BG) – 100% Recourse Loan with a Non Rated Bank instrument or 200% Recourse Loan with a Rated Bank instrument – This loan has an interest between 2% to 7.5% per annum and can span up to ten years in length. (Bank Instrument will have to be blocked or renewed until the loan’s duration is complete).
Note: 5 % commission is paid on Non Recourse and Recourse Loans.
How Long Does it Take?:
- Up to two weeks after the paperwork is completed or a week after the instrument is SWIFT, DTCC, or Euroclear.
Grand City Investment Limited offers bank instrument monetization services for individuals, companies, governments and other organizations (NGOs) for transactions with a $10 million minimum and no maximum limit. Monetization funding is arranged through our network of individual, corporate, private and institutional lenders which include investment banks, merchant banks, private international banks, and trusts. Our Monetization services are backed by a wealth of experience and unsurpassed expertise, in addition to the most advanced financing solutions available anywhere in the world.
We are also pleased to offer our clients all forms of bank and capital market financing and can combine different project funding methods for particularly complex transactions. Our experience providing financing that involves multiple project funding sources – including multilateral, developmental and export credit institutions – is extensive. When specialized expertise is necessary, we draw on relationships with a team of highly experienced advisers. When coupled with our international capital market relationships, we are perfectly positioned to advise clients on every aspect of the transaction and financing. Our worldwide network of lenders positions us to execute funding on advantageous terms, and to provide funding solutions for funding requirements outside the conventional market.
Monetize Financial Instruments Today
We provide aggressive financial instrument monetization services and can monetize virtually any financial instruments usually in five days.
Contact us today by email email@example.com to see how we can help you in your contracts, trade finance, import and export transactions