(6) Securities Borrowing and Lending

Financial Solutions  >  (6) Securities Borrowing and Lending

Securities Borrowing and Lending for your Credit Enhancement
This enables the emission of genuine Bank Guarantees and SBLCs backed by Cash and Securities.

Borrowing and Lending Financial Instruments backed by highly rated Securities is probably the only way to obtain a valid Standby Letter of Credit, or Bank Guarantee for your credit enhancement. Financial Instruments from Euro 10 million to Euro 1 billion are generated and emitted, backed by highly rated Certificates of Debt (listed and rated Securities), which can be MTN, Bond, an Europaper, or a Commercial Paper and can be delivered (also) in the form of a Bank Guarantee (BG), or Standby Letter of Credit (SBLC) backed by such high rated debt instruments. The emission and transmission is via SWIFT MT760 by the Provider's banks HSBC, Deutsche Bank, Standard Chartered Bank, Barclays, UBS AG and Credit Suisse AG.

Here is the Deal!
1. You order a bank instrument (SBLC or BG) for Euro 10 million up to Euro 1 billion backed by highly rated securities.
2. The Provider (a Securities Dealer) will buy a Security on the Secondary Market for your transaction in the respective amount.
3. On the back of the Security he issues a fully cash backed Bank Guarantee or a Standby Letter of Credit and sends it to your bank for your beneficial use.
4. Your bank pays only the service fee for the use of the instrument for one year.
5. After one year your bank guarantees to return the instrument unencumbered or you renew the service which can be for up to 4 more years.