Cash Backed Bank Guarantee & Standby Letter of Credit Providers
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Enquire Toma Australia Investment Limited for your standby letter of credit and Bank guarantee purchase and lease needs.
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Working with different Family Offices and contracted third-parties we have been able to provide a range of acquisition and funding solutions in various market sectors, which is supported by a market leading financial modelling team. Several projects has been completed over the years to raise funds in excess of $10Billion through individuals, corporations, FTSE listed companies, investment funds, family offices among other financial investors by the way of debt/equity which is all focused around the quality of revenue streams.
Our funding revolves around wide range of solutions and various debt instruments including but not limited to debt products (fixed and index linked), capital market solutions, subordinated debts, bridge funding which has all been achieved by our expertise in opportunity identification, strategic due diligence (aquirer and vendor), post-transaction optimization strategies, fund management and most importantly, valuation advice. Our discipline is always strategically placed to identify and evaluate opportunities to obtain superior returns at closing of every transaction.
Standby Letter Of Credit (SBLC) And Bank Guarantee (BG)
The lease and purchase of bank/financial instruments in form of Standby Letter of Credit popularly known as SBLC and Bank Guarantee popularly known as BG from us is achieved through what is referred to as “Transfer of collateral” or “Collateral transfer”. The mechanism is activated when a client approach us as the provider to issue a BG or SBLC in return for a return/contract fee.
Monetization Of Bank
This simply involves converting a bank instrument (Bank Guarantee or Standby Letter of Credit) into liquid cash/legal tender mainly for purpose of project funding. The pre-exquisite for any bank instrument to be monetized remains that such Bank Guarantee (BG) or Standby Letter of Credit (SBLC) must be issued by a well rated bank. In issuing such instrument, it must be a negotiable instrument.
This is often referred to as PPP or PPIP. The main aim of every PPP is to create wealth and the first thing every client needs to understand that in this new age, Private placement programs are transactions of privilege and before you are invited into such programs, you must have gone through rigorous due diligence by any trader who puts you in such program. PPP creates wealth through anticipated profit.
Standby Letter Of Credit (SBLC)
And Bank Guarantee (BG)
The lease and purchase of bank/financial instruments in form of Standby Letter of Credit popularly known as SBLC and Bank Guarantee popularly known as BG from us is achieved through what is referred to as “Transfer of collateral” or “Collateral transfer”.
The mechanism is activated when a client approach us as the provider to issue a BG or SBLC in return for a return/contract fee.
Both parties agree to enter into a contract that governs the issuance of the guarantee as guided by International Standard Practices of the industry and the ICC. Such contractual agreement is referred to as a Deed of agreement (DOA) or a Collateral Transfer Agreement (CTA).
The term “leasing a Bank Guarantee or Standby Letter of Credit” is loosely used for such transactions but it is logically impossible to physically hand out a Bank Guarantee or Standby Letter of Credit, and, rather it should be clearly represented in a form of securities/bank instrument collateral lending. This is why there is never a reference to the word “lease” in a Bank Guarantee (BG) or Standby Letter of credit (SBLC) verbiage. This single fact helps the beneficiary of such lease to
MONETIZATION OF BANK INSTRUMENT
All monetization ends up as a recourse loan. With our cash backed Bank Guarantee or Standby Letter of Credit, you are expected to get an 100% LTV because it is cash backed and not asset backed (which has so many variable that has to be considered before determining the LTV by the beneficiary/beneficiary bank of the receiver of such asset backed Bank Instrument), but no bank will give you a 100% LTV except you have an arrangement with them before approaching us for the Standby Letter of Credit or Bank Guarantee. But you can be rest assured to get a maximum value ranging from an 80% to 95% LTV on any Standby Letter of Credit (SBLC) or Bank Guarantee (BG) issued by us. This basically equates to using the Standby Letter of Credit or Bank Guarantee as a collateral for a loan with your financial institution in simple terms.
In conflict to the point raised above, if you are using an intermediary for your monetization, some has structures in place for a fee or interest who can monetize your Standby Letter of Credit or Bank Guarantee for a non-recourse loan that they intend to personally guarantee. This is not a miracle, but with our experience in the industry, some of the power play monetizer have an exit in place that need a paper from a third party for them to enter into a trade that probably makes up to 400% on the paper. This gives them the play-ground to cover the interest on the credit line/recourse loan from the bank, pay you the LTV on the Standby Letter of Credit or Bank Guarantee and still make great profit. Unfortunately, it is not easy to come by such power players.
PRIVATE PLACEMENT PROGRAM
No private placement program can start unless there is a sufficient quantity of money backing each transaction. It is at this point the clients are needed, because the involved banks and commitment holders are not allowed to trade with their own money unless they have reserved enough funds on the market, comprising unused money that belongs to clients, never at risk.
For Example: The trading banks can loan money to the traders. Typically, this money is loaned at a ratio of 1:10, but during certain conditions this ratio can be as high as 20:1. In other words, if the trader can “reserve” $100M, then the bank can loan $1B. In all actuality, the bank is giving the trader a line of credit based on how much money the trader/commitment holder has, since the banks won’t loan that much money without collateral, no matter how much money the clients have. Because bankers and financial experts are well aware of the open market, and equally aware of the so-called “MTN-programs”, but are closed out of the private market, they find it hard to believe that the private market exists.
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