Collateral Guarantees are fully cash backed, divisible and assignable and issued in the format of a Bank Guarantee or Standby Letter of Credit, issued by major world banks and transmitted via SWIFT MT760.
For qualified clients, we facilitate the structure of fully cash backed, divisible and assignable financial instruments issued by major World Banks, arranged through licensed securities dealers. The transaction is based on a Securities Borrowing and Lending Agreement.
Backing up the emission of a Bank Guarantee or Standby Letter of Credit through public listed, highly rated securities, a Securities Borrowing and Lending transaction is probably the only way to emit a valid SBLC or BG for a private company, to use as collateral for an agreed period of time, without the client having to come up with cash funds of equal value to secure the instrument.
Key Take Aways:
Prime Bank Guarantees are fully cash backed, assignable and divisible.
Issued by major world banks.
Transmission to a borrower's bank is via SWIFT MT760.