Owned Bank Guarantee (BG) Monetization

There are 4 Monetizations that We Utilize:

1. Euroclear – The Euroclear process is extremely fast, and the best part is that there are no SWIFT fees. Euroclear is one of the most established financial transaction networks in the world and was founded in 1968 by JPMorgan.

2. Bank SWIFT – This (BG) is delivered between the two banks via SWIFT MT799 and SWIFT MT760.

3. DTCC – The Depository Trust and Clearing Corporation issues BGs, which we accept. Again, there are no SWIFT fees, and this company was founded in 1999 and is recognized as one of the leaders in the industry.

4. Bloomberg – The Bloomberg process is extremely fast, and there are no SWIFT fees. Founded in 1981, Bloomberg is one of the most established financial transaction networks in the world.

The monetizer must return the Owned Bank Guarantee to the issuing bank 15 days before the Standby Letter of Credit (BG) expires. Monetization LTV for a non-recourse loan (this loan has a lower LTV, but you don’t have to pay it back):

• Loan to Value (LTV) for an Owned Bank Guarantee from 10M to 500M – 65% non-recourse loan with a rated bank instrument or 45% non-recourse loan with an unrated bank instrument.

Monetization LTV for a Recourse Loan:

• 10M to 500M Owned Bank Guarantee – 65% recourse loan with an unrated bank instrument or 80% recourse loan with a rated bank instrument – ​​This loan has an interest rate between 2% and 7.5% per annum and can span up to ten years.

How Long Does it Take? Up to two weeks after the paperwork is completed or a week after the instrument is SWIFT, DTCC, 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 be divided over the ten months and will occur monthly.

1. Once the paperwork is completed, the client sends SWIFT MT799 to the bank to set up the release.

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

3. Once the client’s bank receives the RWA to receive the bank instrument, the client sends 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.

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

2. The client’s 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.
Required Documents:

1. Fill out the Bank Instrument Monetization Application (Download Below)
2. Complete the Bank Instrument Monetization Application and email it to office@batbank.co.id

•   Compliance Standard:

Accepted Standard: MUST be delivered by Euroclear, Bloomberg, DTCC, or SWIFT
Rejected Standard: Bank Instruments from the Forbidden Assets and Financial Instrument Providers List.
Important Information:

1. Please note that the days are banking days and no 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. We don’t issue an RWA or a BCL letter. This tactic is normally used by clients 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 on sending 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:

Non-Recourse Loan Disbursements Example (100 Million Euros):
Bank instrument face value: €100,000,000.00
Recourse Loan disbursement (65%): €65,000,000.00
Total Loan Disbursement: €61,750,000.00