Assignment of Bond or MTN
Bond: A debt investment with which the investor loans money to an entity (company or government) that borrows the funds for a defined period of time at a specified interest rate.
MTN:A note that usually matures in five to 10 years. This type of debt program is used by a company so it can have constant cash flows coming in from its debt issuance; it allows a company to tailor its debt issuance to meet its financing needs.
Type of Bond/TN
Seasoned
Maturity
13-16 month from selection
Value
Between 95% to 105% of the facial value
Value to Loan
Maximum
Rating
from A- to AAA
Leasing Fee
from 6.00% to 8.00% yearly
Up Front Fee Recoverable?
Yes, immediately at issuing conditional payment of leasing fee.
Assignment of a BG
BG: The bank guarantee means a financial institution ensures that the liabilities of a debtor will be met. In other words, if the debtor fails to settle a debt, the bank will cover it. A bank guarantee enables the customer, or debtor, to acquire goods, buy equipment or draw down a loan.
Type of BG
Fresh Cut
Cash Backed
Yes all BG are CASH BACKED.
Maturity
one year and one day from issuing date
Value
100% of the facial value. (Covered by cash generated by the leased bond).
Value to Loan
Maximum
Leasing Fee
from 6.00% to 8.00% yearly
Up Front Fee Recoverable?
Yes, immediately at issuing conditional payment of leasing fee.
Assignment
By MT760 from top bank
Terms and condition on MT760
MT760 assignment is without terms and conditions. Terms and conditions are reported only in the Lending Agreement.
Assignment of SBLC
SBLC: A SBLC is most often sought by a business to help it obtain a contract. The contract is a “standby” agreement because the bank will have to pay only in a worst-case scenario. Although an SBLC guarantees payment to a seller, the agreement must be followed exactly.
Type of BG
Fresh Cut
Cash Backed
Yes all SBLC are CASH BACKED.
Maturity
one year and one day from issuing date
Value
100% of the facial value. (Covered by cash generated by the leased bond).
Value to Loan
Maximum
Leasing Fee
from 6.00% to 8.00% yearly
Up Front Fee Recoverable?
Yes, immediately at issuing conditional payment of leasing fee.
Assignment
By MT760 from top bank
Terms and condition on MT760
MT760 assignment is without terms and conditions. Terms and conditions are reported only in the Lending Agreement.