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Hello Sir ,
We are interested in tje funding programme. Can your lender accept Bg / MTN on euroclear . Can he block on euroclear and fund against the instrument. Kindly let me know. And which country is the lender based at. Kindly mail me the full details.
With Regards
Shivam
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>> Mr. Kotei Nikoi, Beninik Ventures
funding
I am certainly looking forward to working with you on this loan program against AA-rated securities and I just confirmed that T-strips and Treasury Bonds are preferred by the funder. Attached is a copy of the loan agreement (for an MTN transaction) from the lender and below are the deal points:
v Treasury needs to first be verified by the lender (copy or ISIN provided)
v Lender issues contract offer with LTV of loan proceeds for buyer execution
v Security must be delivered via DTC to lender after contract signing, if delivery by 10:00 am, settlement same day by 2:00 pm
v This is a 90-day non-recourse loan with the chance to repeat again (4 times per year)
v At the end of 90-days, the instrument(s) are returned to the investor
v Strips are loaned up to 95% of market value (85% net to client) and T-bonds can go as high as 120% of market value (110% net to client)…Please note this is determined by lender
v A Signed contract tonight and delivery of the instrument on tomorrow morning would mean a payday by mid afternoon in tranches of $500M (Five Hundred Million) per day until deal is concluded.
Instruments that can be funding all have to be rated A+ or better (good banks) and the notes in the banking system (Treasuries, MTN’s, Bank Guarantees, Stand By Letters of credit or Corporate bonds) that are rated and traded. MTN’s can be funded as his as 92%.
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