Complete Recourse Loan & Non-Recourse Loan Monetization of Leased Bank Guarantee (BG) for Project Funding

We never require our clients to pay upfront fees for monetization and are only compensated when a project is completed. This is the agreement that we contractually have with our clients and the Reliance Capital Finance Limited.

We can monetize this through a Leased Bank Guarantee and provide you with a loan through careful negotiations with an attorney-trustee office. This is a loan that you will very seldom have to pay back, and if you do end up having payments, they will be at a low rate. Our clients will receive their funds from an attorney trust bank account with a legal opinion so our clients won’t have to deal with releasing their funds with their local banks.

There are 4 Monetizations that We Utilize:

1. Euroclear – The Euroclear process is swift, and the best part is there are no SWIFT fees. Euroclear is one of the most established financial transaction networks globally 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 swift, and there are no SWIFT fees. Bloomberg was founded in 1981 and is one of the most established financial transaction networks in the world.

Important Information:

– Contract Requirement: Our contracts include the monetizer returning the Leased Bank Guarantee (BG) to the issuing bank 15 days before the BG expires. This is a typical requirement of BG contracts.

Monetization LTV for Non-Recourse and Recourse Loans(This loan have a lower LTV, but you don’t have to pay back)

Loan to Value (LTV) For a Leased Bank Guarantee (BG) of 10M to 500M – 65% Non-Recourse Loan with a TOP Rated Bank Instrument.

Monetization LTV for a recourse loan:

For a Leased Bank Guarantee (BG) of 10M to 500M – 80% Recourse Loan with a TOP Rated Bank Instrument. This loan has an interest rate of 2% to 7.5% per annum and can span up to ten years in length. 

Note: 5% commission is paid on Non-Recourse and Recourse Loans. Our corporation doesn’t monetize bank instruments from Non-Rated Banks.

How Long Does it Take?

– Up to two weeks after the paperwork is completed or a week after the instrument is SWIFT, DTCC, Bloomberg, or Euroclear.

Disbursement of Loan:

1. The loan is disbursed in 12 months.

2. Once the MT-760 is authenticated, three weeks later, 20 percent of the loan will be disbursed.

3. A month after the original disbursement, 20 percent more will be given.

4. Finally, the last 60 percent of the loan will divide over the ten-month period and occur monthly.

SWIFT Closing Process

1. Once the paperwork is completed, the clients send SWIFT MT799 to the bank to set up the release.

2. After receiving the SWIFT MT799 from the client’s bank, the Monetizer’s bank will reply with a SWIFT MT799 RWA to received.

3. Once the clients’ bank receives the RWA to received the bank instrument, clients send SWIFT MT760 to the monetizer’s bank.

4. Once these SWIFT MT760 are received and authenticated, the monetizers must respond within a week to grant the non-recourse loan.

5. At the end of a year, the Monetizer has to return the BG within 15 days of the anniversary of the contract.

Euroclear & Bloomberg Closing Process:

1. Once the contract is signed, the client will talk to their institution and instructs them to use the Euroclear/Bloomberg Delivery to coordinate the delivery of the BG.

2. The clients’ institution must email a certified receipt of the BG delivery through Euroclear.

3. Once the receipt is acknowledged, the Monetizer has a week to grant the LTV Non-Recourse Loan.

4. The BG has to be returned no more than 15 days before the contract has been signed for a year.

Documents Required:

1. Complete the Application for Bank Instrument Monetization.

2. Fill out the Application for Bank Instrument Monetization and email to info@reliancecapitalfinancelimited.com.

Standards of Compliance:

Accepted Standard The instrument has to be delivered by SWIFT, DTCC, Bloomberg, or Euroclear from a flared Bank.

Rejected Standard Any Bank Instrument from anyone off of the Forbidden Assets and Financial Instrument Providers List.

Important Information:

1. Please note that the days are banking days, and weekends or holidays are counted.

    – **Banking Days & Holidays Calculator**

2. With our bank instruments monetization services, everything is non-negotiable. We will not alter the procedures of this service.

3. The compliance department may ask for the last three bank statements of the bank account from where the bank instrument will be issued to start processing a monetization application.

4. We don’t issue RWA or BCL letters. Clients normally use this tactic to shop around for a bank instrument with a provider institution with a banking letter confirming there is a credit line ready to incentivize the provider to send a bank instrument on their behalf. We will never allow this to happen under our company name.

Recourse Loan Disbursements Example (100 Million Euros):

Bank Instrument Face Value: €100,000,000.00  

Recourse Loan Disbursement (80%):  €80,000,000.00

Loan Commission Fees (5%): €4,000,000.00

Total Loan Disbursement: €76,000,000.00

Example of Recourse Loan Disbursement Schedule:

Disbursement	Amount in Euros	Details
Loan 1st Disbursement	€15,200,000.00	20% of the loan in 21 days after received and authentication of the SWIFT.
Loan 2nd Disbursement	€15,200,000.00	20% of the loan 30 days after the 1st disbursement.
Loan 3rd Disbursement	€4,560,000.00	30 days after the 2nd disbursement.
Loan 4th Disbursement	€4,560,000.00	30 days after the 3rd disbursement.
Loan 5th Disbursement	€4,560,000.00	30 days after the 4th disbursement.
Loan 6th Disbursement	€4,560,000.00	30 days after the 5th disbursement.
Loan 7th Disbursement	€4,560,000.00	30 days after the 6th disbursement.
Loan 8th Disbursement	€4,560,000.00	30 days after the 7th disbursement.
Loan 9th Disbursement	€4,560,000.00	30 days after the 8th disbursement.
Loan 10th Disbursement	€4,560,000.00	30 days after the 9th disbursement.
Loan 11th Disbursement	€4,560,000.00	30 days after the 10th disbursement.
Loan 12th Disbursement	€4,560,000.00	30 days after the 11th disbursement.

Non-Recourse Loan Disbursements Example (100 Million Euros):

Bank Instrument Face Value: €100,000,000.00

Non-Recourse Loan Disbursement (65%): €65,000,000.00 

Loan Commission Fees (5%): €3,250,000.00

Total Loan Disbursement: €61,750,000.00

Example of Non-Recourse Loan Disbursement Schedule:

Disbursement	Amount in Euros	Details
Loan 1st Disbursement	€12,350,000.00	20% of the loan in 21 days after received and authentication of the SWIFT.
Loan 2nd Disbursement	€12,350,000.00	20% of the loan 30 days after the 1st disbursement.
Loan 3rd Disbursement	€3,705,000.00	30 days after the 2nd disbursement.
Loan 4th Disbursement	€3,705,000.00	30 days after the 3rd disbursement.
Loan 5th Disbursement	€3,705,000.00	30 days after the 4th disbursement.
Loan 6th Disbursement	€3,705,000.00	30 days after the 5th disbursement.
Loan 7th Disbursement	€3,705,000.00	30 days after the 6th disbursement.
Loan 8th Disbursement	€3,705,000.00	30 days after the 7th disbursement.
Loan 9th Disbursement	€3,705,000.00	30 days after the 8th disbursement.
Loan 10th Disbursement	€3,705,000.00	30 days after the 9th disbursement.
Loan 11th Disbursement	€3,705,000.00	30 days after the 10th disbursement.
Loan 12th Disbursement	€3,705,000.00	30 days after the 11th disbursement.