How does this structured financing work?
ExampleCompany X pledge a collateral and we provide a loan to the borrower (Company X) in credit for trading securities or cash. In this case, same beneficial owner. ExampleCompany X pledge a collateral and we provide a loan to the borrower (Company Y) in credit for trading securities or cash. Company X and Company Y need to provide a proof there are linked in doing business/project. They maybe a JV partners or a subsidiary. Both company need to provide us a proof (eg. Jcompany registrar) that they are a JV partner or subsidiary.
What collateral do we accept?
We generally accept Standby Letter of Credit (SBLC), listed shares (stocks), marketable bonds (Fixed Income).
- On SBLC and Tier-1 Bank Classification
- As for the Standby Letter of Credit(SBLC), we prefer to accept SBLC issued by Tier-1 banks (Tier-1 Banks are those banks with a minimum Credit Rating of A- and above)
- We accept SBLC as collateral, subject to our standard requirements.
- KYC process on various parties involved and the purpose of the transaction / loans.
- Tier 1 – banks and in countries, acceptable to us
- SBLC in i.e. SWIFT format
- SBLC authenticated (the verbiage of the SBLC are non negotiable)
- Required documents for KYC process on applicant and borrower.