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THIS IS NOT AN OFFER TO SELL THIS NOTICE IS ONLY INFORMATION EDUCATIONAL.
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It is for informational purposes only, and is meant to clearly explain this particular Seller’s background and mandatory procedures.
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DESCRIPTION OF INSTRUMENT:
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Instrument : Bank Guarantee
Condition : SEASONED Fully cash-backed
Currency : Euro
Issuer : Top world bank
Date of Issuing : Date of Closing
Date of maturity : One Year and One day from Date of Closing
Contract amount : €10,000,000,000 + Rolls and Extensions
(Ten Billion Euros)
Denominations : €500,000,000 (Five Hundred Million) Euro
Invoice price : 78% (seventy eight percent) face value
each Denomination
Commissions :1 or 2 % of face value depending on buy side
(50 % buyer’s side; 50% seller’s side (closed)
Initial tranche : €500,000,000 (Five Hundred Million) Euro
Following Tranches : As per mutual agreement
Each tranche will be invoiced individually
Purchase Format : Interbank gray screen/verify/block/download
Mode of payment : MT 103 to Seller’s bank within 4 international banking hours
Mode of delivery : Interbank block/download, no hard copy to follow
Screen : Interbank gray screen only
(thru Euroclear/DTC/Reuters interface
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a. The buyers bank needs to have access to the Inter-bank grey screen through the Euroclear/Reuters/DTC platforms to be able to block and download the instrument.
b. Minimum purchase of Euros 2 B at 79+1/2. No Maximum. Contracts in lots of Euros 10B – after the successful conclusion of the first contract, rolls and extensions until money or paper is exhausted.
c. Tranching happens in multiples of Euros500M (can be higher at buyer’s request) under a single contract. Here are the items needed to open the door for further discussion.
We will not hold a conversation until we have received these documents:
1. Client Information Sheet
2. Client Passport
3. Board Resolution (designating the signatory authority to the individual)
4. Non-Solicitation Letter (to avoid charges of Solicitation)
5. Authorization to Verify Letter (to allow our private banker to speak directly with the buyer’s banker once the contract has been signed--- all of the Seller’s transactions are done on INTERBANK (GREY SCREEN). Your buyer’s bank must be one that has the ultrasecure access to INTERBANK. Usually, that person is in the top trading department at the buyer’s bank’s headquarters (—NOT a Branch).
6. FPA
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• They already own the title to the Bank Guarantees.
• They ARE the seller: the seller is NOT the issuing bank.
• The seller is a portfolio holder and not a cutting house.
• They have an inventory of issued, registered Barclays’ Bank Guarantees.
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1. When your buyer comes with his documents within 24-48 International Banking hours, a contract is written up based on the information you provide in the LOI.
2. The seller principal will email 1) The Contract 2) The Access Codes for INTERBANK, and 3) a Screenshot of the BG they will be buying.
3. The buyer’s banker at the top trading department of the bank’s headquarters (NOT your Branch Manager- you will need to elevate your dealings to the top trading department for the purposes of this transaction. If your banker at your branch cannot or will not help you, you will need to initiate a relationship directly with the trading department— AND with the banker in the trading office who has the authorized security access to INTERBANK. That should be the only person at your bank that you deal with henceforth.
4. Your banker signs on, and then inputs the access codes that will have been provided to you from the seller.
5. Your banker will then see not only the specific instrument in its entirety that was sent to you, but also the seller’s information as well as the other inventory of available instruments.
6. For security reasons, Seller requests YOUR banker to furnish the maturity date. This acts as a second layer of security that your bank is indeed at the right place.
7. Once the buyer sends back the signed contract after the verification of the BG, the Seller’s Private Banker/Compliance Officer then calls the Buyer’s Banker, and asks three questions: 1) which screen (DTC, Reuters or EuroClear) they used to access the Interbank screen, 2) a verification that the screenshot is correct on the screen; 3) Whether the Buyer’s Banker can send an MT103 to the seller’s specified bank within 4 hours of blocking and download.
8. Barclays is instructed at this point by the seller to download the BG, change the
beneficiary and reset the maturity date, then upload the changed instrument (MT760), whilst at the same time changing the name of the beneficiary to the buyer. Along with that, a MT799 is also sent as a reconfirmation to the screen that the instrument beneficiary name has been changed.
9. The maturity date of the instrument will be reset to the date of closing plus one year
and one day.
10. The Corporate Invoice with all the data (i.e. Registration Number, ISIN and CUSIP) will be sent by email to the Buyer AND a copy to the Buyer’s Banker. Instructions will
accompany the Corporate Invoice to access and download the instrument.
11. If the Buyer’s Banker is clear that he has the right instrument, he then downloads it.
12. Within 4 International Banking hours, the MT103 is sent from the buyer’s bank to pay for the instrument.
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REQUEST PAPERWORK HERE
It is our intention to become acquainted with the buyer, as it is in all of our interests to create an ongoing relationship. We Look forward to serving you throughout this developing
relationship and this and other subsequent transactions.
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