FAQ
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Funding Questions
Why are Genuine funding instrument providers are so hard to find?
Issuing BGs and SBLCs requires a specialized financial skill set, and as such, genuine providers are few and far between.
High net-worth clients and business owners often need more expertise and time to navigate the issuing process, making a genuine provider’s expertise even more valuable. However, as providers are selective with whom they do business, working with a reputable provider is vital.
Unfortunately, many clients need to be made aware of the upfront fees associated with BGs and SBLCs and often fall prey to monetizers who fail to perform as per transaction procedures.
What is the purchase of a bank instrument such as BG or SBLC?
The purchase of a bank instrument, such as a BG or SBLC, allows the buyer to cash the instrument at its full-face value at the end of the year. When a buyer purchases a bank instrument from a provider, they gain access to its financial benefits.
How can a provider sell an SBLC or BG for half of its face value?
When a provider sells a bank instrument, it is because they have a financial strategy that is well thought out via different trading programs or platforms that, with the cash received from the sale of the bank instrument, they can reinvest the cash for the full year in the commodity market and will, in turn, pay for the bank instrument itself. During this process, they will also make money.
For example, let’s say you purchase a BG or SBLC from MG Capital with a $100 million face value to be cashed in one year, and one day, you will pay $50 million to the company in cash. The company will deliver to you the purchased owned BG or SBLC. At the end of the year (1 year and 1 day), you will double your money 100%, guaranteed by the bank instrument. However, in the meantime, once the funds are received from the buyer on day one, MG Capital or their partners will place that $50 million into the trade market generating at least 10% (more or less) of profit each time they invest the funds.
MG Capital or their partners will get into a partnership agreement with a trading platform that has, for example, a pre-arrangement with a “Chemical Manufacturer” to deliver one container of chemical per week for the entire year, and each container will give them 10% of the profit. Each year has 52 weeks, meaning that when you take that 10% and multiply it by the 52 weeks that a year has, the total profit (TP) will be 520% ($260,000,000 million) of the funds received by the buyer, giving MG Capital or their partners enough funds to pay 100% of the face value of the bank instrument sold to the client and much profit left over to split between them and the trading platform.
A Standby Letter of Credit (SBLC) is a bank’s commitment of payment to a third party if the bank’s client defaults on an agreement. Commonly called or well-known in the financial market as a Bank Guarantee (BG) or Standby Letter of Credit (SBLC).
It is a “standby” agreement because the bank will have to pay only in a worst-case scenario. A Standby Letter of Credit is used mainly in the US, where banks are legally barred from issuing certain guarantees. It serves as a parallel (collateral) payment source if the primary source fails to meet its obligations in part or total and is a substitute for a performance bond or payment guarantee. Hence it is called standby credit.
An SBLC is most often sought by a business to help it obtain a contract. There are two main types of SBLC:
A financial SBLC guarantees payment for goods/services as specified by an agreement.
A performance SBLC, which is less common, guarantees that the client will complete the project outlined in a contract. The bank agrees to reimburse the third party if its client fails to complete the project.
Bank instruments enhance the client’s credit, allowing them to access large amounts of capital simultaneously.
Procurement
MG Capital procures Standby Letters of Credit (SBLCs) mainly from the top 25 rated banks with a minimum face value of $20 million.
Monetization
MG Capital may also provide and/or monetize SBLCs on other top-tier rated and non-rated banks.
Purchase of Standby Letter of Credit (SBLC)
MG Capital offers many types of financial services to those seeking to fund their financial endeavours. We work with many private lenders and banking institutions to fulfill your financial needs. There are many ways to arrange non-recourse collateral, recourse collateral, or credit enhancement.
We help to get clients fresh-cut SBLCs from the world’s top 50 banks; issuing banks use SWIFT Network to deliver SBLCs
Advantages of purchasing a Standby Letter Of Credit (SBLC) from us.
- We purchase SBLCs from the top 20 world banks.
- We offer monetization of the instruments in case the clients need this service.
- SBLC is available in EUR and USD.
- Price varies on a week-by-week basis on market conditions. Generally speaking, the price for the world’s top 50 banks is 50 – 53% + 2% broker fee; However, we can acquire banking instruments at below-market prices.
- The owned bank instruments can be called back for their total face value at the end of the year since it is yours to cash out.
- The minimum face value for selling a Standby Letter of Credit (SBLC) purchase is $20 million.
- After receiving the MT760, the client has five (5) to seven (7) banking days to complete the payment.
- Pre-advice for the MT799 is included along with the SBLC.
- No documentation for your project required
- The agreement is signed and returned within 72 hours of completion.
- MT760 offers SWIFT delivery to your bank.
- Brokers receive up to 0.5% commission.
- SBLC is specific to each client’s needs (on best effort basis).
Standby Letter of Credit Monetization
SERVICE AND INSTRUMENT DESCRIPTION:
Complete Recourse Loan and Non-Recourse Loan monetization of Standby Letter Of Credit (SBLC) for the intention of project funding. This is the agreement we contractually have with our clients and MG Capital. We never require our clients to pay upfront fees for monetization and are only compensated when a project is completed. But in some cases the fee may be required.
There are four monetizations that we use:
- Bank SWIFT. This (BG) is delivered between the two banks through SWIFT MT799 and SWIFT MT760.
- The monetizer must return the Standby Letter of Credit (SBLC) to the issuing bank 15 days before the Standby Letter of Credit (SBLC) expiration.
- Monetization LTV for a Non-Recourse Loan (this loan has a lower LTV, but you don’t have to pay it back):
- Our LTV varies from 8% to 100% depending on the bank’s credit rating, the issuing city, the languaging of the buying instrument, and the client’s needs.
How long does it take?
7- 10 banking days after the paperwork has been submitted and the instrument has been sent via SWIFT to our monetizer.
Disbursement of funds
- If it is less than $ 500 Million USD or EU, the payment has to be
- The funds are disbursed in 12 months.
- Once the MT-760 is authenticated, three weeks later, 20% of the funds will be disbursed.
- A month after the original disbursement, 20% more will be given.
- Finally, the last 60% of the funds will be divided over the remaining ten months and distributed monthly.
Our closing process
SWIFT Closing Process
- Once the paperwork is completed, the client sends SWIFT MT799 to the bank to set up the release.
- After receiving the SWIFT MT799 from the client’s bank, the Monetizer’s bank will reply with a SWIFT MT799 RWA to receive.
- Once the client’s bank receives the RWA to receive the bank instrument, the client sends SWIFT MT 760 to the monetizer’s bank.
- Once these SWIFT MT 760 are received and authenticated, the monetizers must respond within a week to grant the non-recourse loan.
- At the end of a year, the Monetizer has to return the SBLC within 15 days of the anniversary of the contract.
Required Documents:
- Fill out the Bank Instrument Monetization Application.
- Complete the Bank Instrument Monetization Application and email it.
Compliance Standard:
- Accepted Standard: MUST be delivered by SWIFT.
- Rejected Standard: Bank Instruments from the Forbidden Assets and Financial Instrument Providers List.
Important Information:
Please note that the days are banking days, and weekends or holidays are not counted.
Banking Days & Holidays Calculator
With our bank instrument monetization services, everything is non-negotiable. We will not alter the procedures of this service.
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.
Clients typically 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. We don’t issue RWA or BCL letters.
Recourse Loan Disbursements Example ($10 Million Dollars):
- Bank instrument face value: $10,000,000
- Recourse Loan disbursement (80%): $8,000,000
- Loan commission fees (5%): $400,000
- Total Loan Disbursement:$7,600,000
Non-Recourse Loan Disbursements Example ($10 Million Dollars):
- Bank instrument face value: $10,000,000
- Recourse Loan disbursement (65%)
- Loan commission fees (5%)
Bank Guarantees
Banks Guarantees are written obligations of the issuing bank to pay a sum to a beneficiary on behalf of their customer if the customer himself does not pay the beneficiary. It is important to note that these Bank Guarantees apply only whenever the issuing bank’s guarantee is not contingent on the existence, validity and enforceability of its customer’s obligation. This is called an “abstract” guarantee (i.e., the bank’s obligation is to pay regardless of any disputes between its customer and the beneficiary).
The issuance of bank guarantees is a private transaction and does not result in the issuance of publicly tradable instruments.
Purchase of Bank Guarantees
AltFunds Global offers financial instruments to those seeking to fund their financial endeavours. There are many ways to arrange non-recourse collateral, recourse collateral, or credit enhancement. We work with many investors from Europe and North American banking institutions.
The world’s top 50 banks issue our Bank Guarantee (BG) purchase, and we use the bank’s SWIFT Network to deliver these banking instruments. We achieve this using SWIFT MT799 and SWIFT MT760.
Advantages of purchasing a Bank Guarantee (BG) from us:
- Our providers operates with the top 50 world banks to secure your Bank Guarantee.
- We offer monetization for our bank instrument in case clients need this service.
- BG is available in EUR and USD.
- Price varies week by week based on market conditions. Generally speaking, the price for the world’s top 50 banks is 50 – 53% + 2% broker fee; However, we can acquire banking instruments at below-market prices.
- The bank instruments can be called back for their total face value at the end of the year since it is yours to cash out.
- The minimum face value for selling a Purchase Bank Guarantee (BG) is $20 million.
- After receiving the MT760, you have five (5) to seven (7) banking days to complete your payment.
- Pre-advice for the MT799 is included along with the BG.
- No documentation for your project required
- The agreement is signed and returned within 72 hours of completion.
- MT760 offers SWIFT delivery to your bank.
- We offer Bloomberg, Euroclear, or DTC delivery to your bank.
- Brokers receive up to 0.5% commission.
- BG is specific to each client’s needs.
- The deposit is 100 % protected, and the provider bank endorses client payout.
Bank Guarantee (BG) monetization
Total recourse loan and non-recourse loan monetization of Bank Guarantees (BG) for the intention of project funding. This is the agreement that we contractually have with MG Capital. We never require our clients to pay upfront fees for monetization and are only compensated when a project is completed.
We can monetize this through a 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 problems in releasing their funds with their local banks.
There are four monetizations that we use:
Bank SWIFT: This (BG) is delivered between the two banks through SWIFT MT799 and SWIFT MT760.
We can purchase the BG in full, or the client can hold ownership against an Owned Bank Guarantee. Many clients choose the latter option to have a non-recourse loan. Through our contractual obligations, the monetizer must return the Owned Bank Guarantee to the issuing institution at least 15 days before the expiration date of the BG.
Monetization LTV for a non-recourse loan (This loan has a lower LTV, but you don’t have to pay it back)
Our LTV varies from 8% to 100% depending on the bank’s credit rating, the issuing city, the languaging of the buying instrument, and the client’s needs.
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?
7- 10 banking days after the paperwork has been submitted and the instrument has been sent via SWIFT to our monetizer.
Disbursement of Loan
The loan is disbursed in 12 months.
Once the MT-760 is authenticated, three weeks later, 20% of the loan will be disbursed. A month after the original disbursement, 20% more will be given.
Finally, the last 60% of the loan will be divided over the remaining ten-month period and distributed monthly.
Our Closing Process:
SWIFT closing process
- Once the paperwork is completed, the client sends SWIFT MT799 to the bank to set up the release.
- After receiving the SWIFT MT 799 from the client’s bank, the monetizer’s bank will reply with a SWIFT MT 799 RWA to receive.
- Once the client’s bank receives the RWA to receive the bank instrument, the client sends SWIFT MT 760 to the monetizer’s bank.
- Once these SWIFT MT 760 are received and authenticated, the monetizers must respond within a week to grant the non-recourse loan.
- At the end of a year, the monetizer has to return the BG within 15 days of the anniversary of the contract.
Note: Procedures, numbers and requirements are subject to be changed.
We monetize instruments that have already been issued (SBLCs, DLCs, CDs, etc.). The minimum instrument size is $20 million, and our fees are 1.5% plus broker fees.
You can start with our Monetizing Banking Instruments (MBI) program.
SBLC needs to be monetized. This is the credit enhancement as the client has a bank instrument to borrow against it.
SBLC can generally be monetized at up to 80%, on face value, depending on the issuing bank rating and the issuing city; for example, a $100M SBLC issued by a top-rated bank can deliver the client $80 million minus the commissions.
Recourse: MG Capital facilitates the distribution of all recourse SBLCs into non-recourse SBLCs by participating in buy/sell programs of the monetized value and relieving the client of the burden of paying back the SBLC.
Non-Recourse – the monetization may be non-recourse – with no need to pay the monetizer back. The monetizer is responsible for paying off the SBLC. This strategy usually generates a lower LTV.
MG Capital can issue, accept and monetizes Letters of Credit (LC) with top-rated and non-rated banks. This instrument is usually used in global trade finance and credit enhancement. Some conditions will apply depending on the banking institution.
A Letter of Credit (LC) is a bank service ensuring payment of the amount indicated in the letter of credit to the seller as per the buyer’s instructions against the shipment of goods, performance of other conditions stipulated in the letter of credit and submission of relevant documents.
Thus, upon transfer of ownership over the goods sent by the seller to the buyer and submission of the document confirming the fulfillment of other conditions of the LC, the bank (issuer) will ensure the transfer of payment to the seller’s account.
Advantages of LC for the buyer:
- Elimination of risk of losing money for the buyer
- Payments are made after fulfillment of the seller’s contractual obligations
- Transfer of ownership over shipped goods to the buyer within the period indicated in the LC and according to other terms
Advantages of LC for the Seller:
- Guarantee of payment independent of the buyer (subject to the fulfillment of contractual obligations)
- Possibility of payment before handing the goods over to the buyer
- Possibility of execution of complex commercial contracts
Medium Term Notes
This debt instrument has a date of maturity and a face value annual interest rate and is sold by the central banks to investors. Term maturity is typically 5-10 years and is used for large projects with financing requirements and a need for more solid investors. This type of funding can be used as collateral, place a lien and monetization. unclear
MG Capital partners can issue MTN through the world’s top 50 banks and use Swift MT760/799.
How we protect our client’s deposits
- You never have to worry about your security with our three levels of protection: (note: the rest of this is a link).
- Selected and Frequent Bankers/Providers have been vetted by third party investigating company.
- The client can deposit their capital or asset in one of our trusted attorneys’ IOLTA Trust accounts.
General Frequently Asked Questions
No. Due to the amount of inquiries we receive. The Bank Instrument must be issued from a A+ rated Bank in a rated Jurisdiction. But if the instrument is already issued then YES you have to send a copy of instrument and full CIS-KYC of the owner of instrument.
No. You should move your account to an A Rated or AA Rated bank.
No. Only brokers and rep’s give that kind of information to the potential clients and they are often not realistic. It is against the law to quote actual returns from a trading platform or to provide written or verbal amounts outside of the actual contract. That is why the term “historical returns” are quoted.
No. The client is not under any obligation to accept the terms or the ROI’s that will be provided in the verbiage of the trade contract.
There are occasional programs available for LTN’s, please contact us for availability. The bonds would need to be on Euroclear and sometimes the trader will pay the costs involved.
The most important thing is REALITY! NO ASSIGNEES, OR BENEFICIAL OWNERS, etc. FULL KYC, including tax receipts, and full set of bond documents are required.
Note: We do not accept historical bonds.
Yes. We have Monetizers for Bank Instruments either Leased or Purchased. The LTV depends on the rating of the issuing Bank 35-50% for Leased Instruments, Up to 80% for owned Instruments. Again these numbers are not final, the LTV will depend on the rating of issuing bank and nature of bank instrument too.
No. The KYC Package must be the one supplied by us. All KYC Documents must be with current date. Packages more than 3 days old will be rejected. Client has to provide the copy of passport first.
Depends on the program you are entering and if a bullet is available, in a lot of cases yes but not always.
If a bullet is available you would be notified after passing compliance.
Yes, almost all programs are weekly payouts, unless stated differently in contract.
Yes, The admin hold/block will in favor of the trader for the term of the trade when it is released unencumbered and without liens back in favor of account holder.
Some of our Traders accept those and Yes, providing you can produce an up to date bank statement and have access to the funds and they are not in a sub account.
No, the funds must be free and unencumbered.
Yes, but must be cash backed and from an A rated or AA rated bank.
Bank must be a minimum B+ rating in a rated Jurisdiction, with the ability to issue either an MT760, 799, 542 or an admin hold or block.
No, The contract is strictly confidential between the client and trade group and can only be issued after client has passed compliance.
There is a set procedure to follow:
1.) Submit a KYC (Know Your Client) package, complete with a copy of your passport and either a Bank Statement, or a copy of the Bank Instrument.
2.) The compliance department will complete due diligence on yourself and the funds or Bank Instrument which takes between 5-7 working days depending on how busy they are.
3.) If you pass compliance a contract will be issued.
4.) If required there will be a call between between yourself and the compliance department to answer any questions you may have.
5.) You sign and return the contract.
6.) You contact your bank to either issue the required swift or put the admin hold block in place. This can take between 2-5 days depending on the Bank.
7.) Once the swift or block is in place the trade would start usually within 72 hours.
The funds or Bank Instrument is blocked in favor of the trader. The trader uses the asset to draw a credit line from his bank to trigger the trade. At the end of the trade term the block is released unencumbered bank to the asset owner.
No, the Funds or Instrument are only used by the trader to draw a credit line and are left unencumbered.
No. As mentioned in the previous Q/A every trade has a net positive return. Typically the minimum spread is 10% or more. So for every $100MM trade of bank notes the Private Investment Program will make 10% or more. It is not possible for the trader or investor to lose. It is not possible for the trader to make less. Every trade has a known net positive return before the trade is made. Traders will make these trades hourly and daily, so over a month period the 50% to 100%plus return is assured for the investors. The traders make double those numbers, however they split the profits with the investor. The exact information will be mentioned in the contract once you get it from trader.
Private Investment Programs only trade prime bank notes by arbitrage. What arbitrage means is that the buy and sell contracts have to be “in hand” before the trade of the discounted banknotes take place. This is the safest way to trade because the deal is done before the deal takes place. This is all done by the trader for the Private Investment Programs. Since in the Private Investment Program traders only buy notes when they have a buyer at a higher price every trade has a net positive gain due to the “controlled trading” practices. There is zero risk to the Program traders, and zero risk to the bank, and zero risk to the investor
LTN Frequently Asked Questions
About LTN Purchase Program that is Available and on How to Work with MG Capital Group Inc. on LTNs
About LTN Purchase Program that is available and on how to work with us on LTNs
Why does this purchase program require copies of physical bond documents when bond information is available by black screens?
The LTN Program wants to make sure that the bond owner can provide them because (1) they will be the basis for the “Safekeeping Receipt” at the transaction bank and (2) they will need to be conveyed along with the physical bond to the buyer at closing. Once the transaction starts moving forward and the Program Facilitator is investing their money in up-front costs, they want the transaction to close as quickly as possible and to not be delayed by bond owners having to go out and obtain updated documents at that late date.
Why are STN documents with stamped dates between 2017-2020 required?
As of January 2017, Tesouro Nacional and Banco Central do Brasil (BCB) put in place a new bond authentication process. As of that date the transaction bank can verify the ownership, documents and the authenticity of a bond utilizing a secure bank to bank online portal. This new authentication method no longer requires SWIFT communications with BCB and reduces the time and expense associated with verification and due-diligence. Bonds documents actualized prior to 2017 do not have the codes issued to utilize the new verification system.
Why will a current Transport document be required before closing?
This is a requirement of the transaction bank. A current and valid transport certificate is required by the bank when they receive the instruments and associated documents so that they can accept bonds and issue a safekeeping receipts with full banking responsibility. The transport will also be required by the buyer when the instrument is conveyed at the time of closing. Both parties must be confident that there will be no legal complications with Brazilian authorities.
Why will a current GRU and receipt be required before closing?
A current and valid proof that all taxes due on the LTN is required by the bank when they receive the instruments and associated documents so that they can accept bonds and issue a safekeeping receipt with full banking responsibility.
Why won’t the purchase program compromise on their list of “required” documents?
This LTN purchase program is designed to convert a worthless LTN bond into a cash-backed Global Note that is recognized by the market as having value. This involves cash-backing by a reputable bank and creating an instrument that can be traded on the secondary market. To accomplish these objectives, the program facilitator must meet stringent banking requirements for each of these tasks. The requirements for updated documents come from the transaction banks, not from the Program Facilitator.
After fully meeting submission requirements, are any of the program procedures negotiable?
It is possible that some procedures may be modified, however, any proposed exceptions or deviations from the standard procedures outlined in the Prospectus would need to be submitted in writing and be reviewed and approved by at least the Program Facilitator and the transaction bank and perhaps also by the Buyer and by Euroclear attorneys. It will be difficult to change the standard procedures that have been negotiated with and approved by the attorneys of several entities.
Why is the program prospectus so long and detailed?
The international banking community and banking regulators require full disclosure of every aspect of the program for sophisticated investors and their attorneys to review. The document is prepared by lawyers and must be approved (1) by a reputable financial services firm (Deloitte Touché), (2) the transaction bank, (3) the potential buyers, and (4) the Euroclear exchange attorneys. All relevant information must be included in this document, including every conceivable potential risk.
Since my bonds are already located in a reputable storage facility in Europe, why do my bonds have to be put into safe-keeping in the transaction bank?
The transaction bank must secure the bond in their facility to issue a Safekeeping Receipt with full banking responsibility and then to load the bonds onto the Euroclear exchange. This cannot be done if they do not have control of the instrument and supporting documentation. Furthermore, the transaction bank must be able to convey bonds to buyers at closing. Again, they cannot convey the bonds if they are being held by another institution
How long does the LTN purchase process take?
There are several purchase process factors for which there are no definitive allocations of time, such as: (1) prioritization of a specific bond in the queue, (2) speed of processing bonds in the queue [see note below], (3) identification of a specific buyer for a bond, (4) bond owner return of executed sales and purchase agreement (SPA), (5) bond owner delivery of bonds to be transacted. It is only after the SPA is executed and the bonds are delivered to the transaction bank that reasonable timing predictions can be made for the conclusion of the transaction: approximately 20 banking days.
[NOTE] Queue processing speed is also affected by the: buying appetite and financial capacity of institutional buyers, financial capacity of transaction banks, number of transaction banks, and timing of adding additional transaction banks.
After I submit my bond portfolio to MG Capital, how many bank days will it take . . . *
* For program review and registration of my submission?
It should take MG Capital no longer than five to seven working days to review bond packages. When we determine that a package is complete, SRM then attempts to register the bond owner with the Program Facilitator. If there are no registration conflicts, the bonds are placed into the existing bond portfolio queue.
* To get to the top of the queue?
At the time of submission, each bond will be registered at the bottom of the queue and will be selected as the bonds above it are sold. While the portfolio queue is growing, the Program Facilitator also has a growing list of transaction banks and, as more transaction banks are engaged, the capacity to close more bonds at the same time will increase.
* To receive my prospectus?
We are unable to predict this this because issuance of the prospectus will depend on the completion of all the following: (1) In-take officer compliance approval, (2) Program Facilitator acceptance and registration, (3) Bond prioritization in the queue, (4) Selection of a buyer, and (5) Issuance and delivery of a Registered Prospectus. In addition, the timing of this task is dependent on the number of bonds in the queue at the time of submission.
After I sign and return my prospectus agreements, how long will it take to receive a Sale and Purchase Agreement (SPA)?
Once a bond is selected by a buyer, an SPA can be issued in about 5 banking days. After the bond owner accepts the terms and signs and returns the SPA, the transaction process will move rather quickly.
After I execute the Sale and Purchase Agreement . . . *
* How fast will I learn the location of the transaction bank?
The location of the transaction bank is revealed in the SPA.
* How quickly do I need to deliver my bonds to the transaction bank?
Immediately or within a few days. Once the SPA is written, bond delivery must be completed without delay and within a reasonable amount of time. Extended delay might cause the offer to be delayed or even cancelled.
* How long will it take to get a closing date scheduled?
Closing dates are not scheduled until (1) bonds are delivered to the closing bank, (2) a safe keeping receipt is issued, (3) the bond is backed with a cash value, and (4) loaded onto Euroclear. If all goes well this process can be accomplished in 15-20 banking days.
* How long will it take to close?
On the scheduled day, closing will only take a few hours at the transaction bank.
* How long will it take to receive my sales proceeds?
Settlement of sale proceeds is expected in 3 banking days.
How large is the bond portfolio queue?
The queue of registered LTN packages is sizeable and growing steadily as additional portfolios are submitted and accepted. SRM's portfolio queue totaled 100 packages by end of September, 2020. The more highly prioritized and desired H-series bond portfolios make up less than half of the total number of registered bond portfolios.
Who are the buyers?
The Buyers are large financial institutions and international corporations, but the actual identity of these Buyers is confidential.
How many options are there for transaction banks?
Currently, there are two transaction banks approved with additional banks to come online soon.
Why is the transaction closing restricted to so few banks?
Bank attorneys must review and approve the prospectus and they must register with BCB to access the secured portal through which bonds are authenticated on a bank-to-bank basis.
Can the bond owner choose where his sales proceeds are delivered?
The bond owner’s sale proceeds will be quickly delivered to a secure account established in the bond owner’s name by the Program Facilitator. After the funds arrive in that “smart fund” account, the bond owner can move them to any location at their own discretion.
Why does the closing need to be in Europe?
The closing takes place at an approved and compliant transaction bank. Since Europe is where most of the critical operations of the Program Facilitator take place, all transaction banks are expected to be in Europe.
Can the seller select the county, city, and bank where the closing will take place?
No
Does the bond seller need to be present at closing?
No
Can the bond seller be present at closing if he wants to be present?
Yes
Will the program facilitators offer any trade opportunities to me after closing?
Possibly.
Will MG Capital offer any cash-trade opportunities to me after closing?
Yes. Shortly after the date when bond owners receive their sale proceeds, MG Capital will request the bond owners to consider at least one or two different private cash-trade programs.
What is MG Capital LTN processing model?
How is MG Capital connected to the available LTN purchase program?
What is the compensation arrangement for consultants?
What PSA percentages does MG Capital feel is appropriate for consultants who provide services required for a successful transaction?
What does MG Capital believe about the relative value of the contribution made by program-side consultants compared to client-side consultants?
How many members are involved on the MG Capital LTN Team?
The MG Capital LTN team is made up of 4 parties whose primary functions are in the areas of administration, banking/paymasters, Portuguese communication and marketing.
What range of PSA percentages are requested by the MG Capital LTN team?
Will the PSA document that MG Capital creates request the bond owner to provide compensation for both program-side consultants and client-side consultants?
How will the requested total PSA % amount be determined?
How will MG Capital split PSA compensation with working client-side consultants?
How will MG Capital arrange for the payment of compensation to client-side consultants through its paymaster account?
Will MG Capital provide some protection for consultant compensation?
Will the LTN purchase program ensure the payment of PSA compensation to consultants?
What if the bond owner is not willing to compensate either the program-side or the client-side consultants?
What is the difference between a Working Consultant and a Referral Partner?
Why does MG Capital require a completed and signed Bond Package Summary & Genealogy?
What is the Introducing Consultant designation?
How does MG Capital handle duplicate introductions of the same bond owner?