MTN's / BG's Buy and Sell
We are looking to form a long-term relationship with serious buyers, thank you.
Below and attached is a base line document and procedures for the contract MTN 85 + 1 (actually 85.5 +.5 as the sell side is paid by Seller).
The Provider Bank is willing to confirm and provide a bank undertaking immediately upon receiving a Pre-Advice only from the Buyer's bank and BEFORE a MT 799 is issued by the Buyer / Buyer's Bank. Should the Buyer be able to follow the Sellers procedures, the paper will be provided immediately as per the timetable outlined in the enclosed documents.
If the Buyer answers yes to the questions below, the Seller is in a position to provide MTNs immediately:
Is the Buyer interested in MTNs cash backed on a contract basis ($ 2B - $ 20B) with tranches starting at $500M?
Is the Buyer in a position to purchase the MTNs immediately and is the Buyer able to purchase with their own assets?
Is the Buyer able and willing to transact on a Bank to Bank basis?
All information on the Buyer is required as standard protocol, but generally speaking, the minimum requirement is for the Buyer to provide:
However, the Buyer will have to provide full documentation to the provider as outlined in the enclosed documents.
Bank Instrument description of the MTNs offered:
Instrument: Medium-term, senior, unsubordinated bank debentures (MTNs) 322, with 144c exclusions, and subject to the Uniform Customs and Practices for documentary Credits, ICC Publication â€“ 400/500 revised.
Issuing Bank: Top 25 West European bank
Age: Slightly Seasoned
Term: Ten (10) years and one (1) day
Rating: S&P "AA" rated or better
Interest Rate: The currency exchange equivalent of 7.5% in USD
Contract Amount: Two Billion Euros (â‚¬2,000,000,000.00) with
extensions up to Twenty Billion Euros
(â‚¬20,000,000,000.00). USD also possible
Invoice Price: 85% plus one percent (1%) of the instrument's face value, for Fees and/or Commissions.
First Tranche: Five Hundred Million USD ($500,000,000.)
Subsequent Tranches: As agreed
Tranche Frequency: As agreed
Mode of Purchase: Bank to Bank - Delivery versus Payment Protocol â€“ as per attached procedures
After MT799 completed for first tranche
Denominations: Ten (10), twenty-five (25), fifty (50), and one hundred (100) million Euros or as agreed
Purchase & Delivery: DVP with hard copies of instruments to follow within seven (7) banking days
PROCEDURES FOR PURCHASE OF
SEASONED MEDIUM TERM NOTES (MTNs)
Buyer submits an LOI/RWA/CONTRACT together with the following:
A. Client Information Sheet (format attached);
B. Color copy of passport of Principal Signatory (format attached);
C. Corporate Resolution (if applicable) giving the signatory named the authority to enter into a contract to purchase; and
D. Non-Solicitation Letter.
The Buyer's information is forwarded to ("provider") for review and approval. If acceptable, provider will add its banking information and account coordinates and execute the LOI/RWA/CONTRACT. The executed CONTRACT will be returned by email or fax to the Buyer. Provider will lodge the executed CONTRACT with its bank, London.
Buyer causes its bank to send SWIFT MT799 (format attached) to
providers bank coordinates demonstrating Buyer's financial capability.
A. Before the SWIFT MT799 is sent, Buyer's bank will pre-advise via
SWIFT the following text message:
Please confirm that XXXXXXXXXX INC has lodged with you a Contract with BUYER.
Please also confirm that you are prepared to receive a SWIFT MT799 (format attached to Contract) showing that BUYER has cash funds in the amount of Five Hundred Million USD ($500,000,000) on deposit which are reserved and allocated for settlement of purchase of Medium Term Notes according to the terms of the Contract.
B. Upon receipt of the pre-advice above, provider bank will respond with the following text message:
PROVIDER INC has lodged the referenced Contract with Bank in
We are prepared to accept from you a SWIFT MT799 on behalf of your client BUYER (in format attached to Contract)
C. Upon receipt of the response from provider Bank, the SWIFT MT799 will be sent from Buyer's Bank.
Within 2 international banking days provider will transmit to Buyer, with a copy to Buyer's bank coordinates, a Certified Corporate Invoice containing, but not limited to, CUSIP/ISIN Numbers, Issuing Banks, Date of Issuance and Maturity, Denominations, Text of Instrument, Custodial Safekeeping Numbers, Full Bonding Power information, etc.
After verification and authentication of the Certified Corporate Invoice, Buyer will accept the MTNs and within four (4) banking hours from the arrival of the Invoice, Buyer's bank will send payment of the Invoice to Providers bank coordinates.
The hard copies of the MTNs are to be delivered via bank bonded courier to Buyer's bank within seven (7) banking days after the payment being received by Provider's bank.