Private Placement Program ()  WITH BANK GUARANTEE / THE  DEPOSITARY CERTIFICATE/ PROOF OF FUNDS  and  the  export  credits   for   investment  projects
   
                      

 

 

HomeOur companyCREDITS (OECD)Private Placement ProgramPPP CASH 2012PPP BG, CD, MTNCONTACTS

 

                                                                                                                           

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Private Placement Program - http://icc758.com/financing/private-placement/

 

LOAN

http://icc758.com/financing/loan/

PROCEDURE to obtain a loans secured by bank GUARANTEE OF SBERBANK OF RUSSIA

 

Were offer the one of the schemes of transaction that consists of the following:

 

Principal / an applicant must be able to issue Bank Guarantee of acceptable banks the expense of own funds to use as collateral for a loan

 

 

 

Principal / an applicant should be ready to sign an agreement with our company ORIENTAL WEALTH MANAGEMENT CO., LIMITED on joint activities to finance the corresponding investment project due to the loan.

 

 

Principal / an applicant should initiate the issuing of bank letter - RWA in his address with simultaneous copies of letters that send  from the official E-mail of issuing bank to E-mail the bank HSBC HK and E-mail info@icc758.com (our company's) regarding the readiness to issue Bank Guarantee in favor of a third party - the ultimate beneficiary designated by us .

 

We get the funds to our account at HSBC HK against this bank instrument with a certain discount from our financial partners who is interested in the success of our transactions to increase the capital to the certain investment project.

 

In order to ensure the safety of the transaction and guarantee repayment of the loan, the loan amount (the body of the loan) will be blocked on our account by the lender for collaboration to increase the capital.

 

Such joint efforts gives us a real opportunity to fulfill their obligations to the Principal / an applicant of BG and to pay him the full amount borrowed funds in tranches, as well as guarantee to our financial partners repayment of the loan and participation in profits.

 

The Step by step procedure to obtain a loan secured by the Bank Guarantee:

 

1. After appropriate tripartite negotiations between the initiator of the transaction, the company ORIENTAL WEALTH MANAGEMENT CO., LIMITED, as a primary Beneficiary / Lender and the Principal / Applicant as Borrower, shall be signed the Loan agreement to finance of the investment project of the Principal / applicant / borrower via the loan. This loan agreement also will put into the issuing bank.

 

 

2. The borrower/applicant (Principal) initiates simultaneous forwarding from bank officer copies of the of information letter RWA (Appendix 1) by E-mail from the official E-mail of issuing bank to the official E-mail  to the official E-mail of Principal / an Applicant ( the client of issuing bank) and copies to the E-mail: commercialbanking@hsbc.com.hk  HSBC HK that Bank Primary beneficiary and at the same time (CC) copies to the official E-mail: icc758@gmail.com  of company ORIENTAL WEALTH MANAGEMENT CO., LIMITED (Primary Beneficiary). Consequently we get the right to sign the relevant agreements the monetization of the BG with known to us the financial institutions, who willing to work with us on certain conditions. This agreement, we also provide to the issuing bank to issue of BG to the final beneficiary.

 

 

 

 

3. In accordance with our letter to the Borrower / Principal and submitted to the bank the Agreement of borrowed investment funds, the Principal/Applicant of BG will initiates sending from the issuing bank the Pre-Advice via SWIFT MT799 to the account of Final Beneficiary to the funding bank. If necessary (In case of problems to obtain SWIFT MT799 Pre-Advice in receiving bank), an Applicant/Borrower immediately should organize simultaneous sending/forwarding by E-mail certified copy of SWIFT MT799 Pre-Advice from the official E-mail the issuing bank to the official E-mail of bank of finale beneficiary, and (CC copy) to the Lender.

 

 

 

4. Within five (5) business days after receipt and confirmation SWIFT MT799 from the issuing bank of the Borrower the receiving bank will send SWIFT MT799 of readiness to accept BG via SWIFT MT760 and confirm the availability of funds.

 

5. Within three (3) business days after receipt and confirmation SWIFT MT799 of readiness to accept BG, the issuing Bank of the Borrower will send BG via SWIFT MT760 to the receiving bank specified by the Lender to the designated of finale beneficiary. If necessary, an applicant of BG / borrower should organize simultaneous sending/forwarding by email copies of SWIFT MT760 from official E-mail of the issuing bank to the official E-mail of bank of finale beneficiary, and (CC copy) to the Lender

 

6. Within seven (7) business days after receipt and successful verification SWIFT MT 760 the issuing bank will send the original (hard copy of BG) with wet signatures to the receiving bank by courier.

 

 

Payment of the Loan to the Borrower by the Lender will be implemented in the agreed amount and schedule in accordance with the Agreement with the Lender and the contract for supply and installation of equipment.

 

Once again we would like to draw your attention that every loan must be returned with payment of relevant bank interest. . We take this commitment to our company as the primary recipient of the funds secured by BG. Also in this case, we commit ourselves to pay you the loan by tranches and return the BG without encumbrance.

 

 

ON BANK LETTERHEAD

(To be send by the Issuing Bank)

 

VERBIAGE/TEXT OF BANK CAPABILITY AND RWA LETTER

Date:

 

To:    Applicant   _______ PLC

Attn: Beneficiary ORIENTAL WEALTH MANAGEMENT CO., LIMITED

Reference:  BANK GUARANTEE IN THE AMOUNT OF 500,000,000.00

 

WE, ____BANK, WITH REGISTERED ADDRESS AT   ______, REPRESENTED BY UNDERSIGNED OFFICERS, HEREBY CONFIRM WITH FULL BANK RESPONSIBILITY AND LABILITY ON  BEHALF OF OUR CLIENT _______.     ACCOUNT NUMBER: ______ THAT WE ARE READY, WILLING AND ABLE TO ISSUE AND DELIVER ONE  (1), BANK GUARANTEE, IN ACCORDANCE WITH ICC PUBLICATION NO. 758 ISSUED BY _____BANK  IN FAVOUR OF ORIENTAL WEALTH MANAGEMENT CO., LIMITED   WITH A PRINCIPAL FACE VALUE OF _____ MILLION EURO ( __250,000,000.00) WITH VERBIAGE CONTEINED OF THIS TRANSMISSION.

 

THE IMPLEMENTATION SHALL BE DONE VIA SWIFT MT799 PRE-ADVICE, SWIFT MT760 AND

ORIGINAL WET SIGNED HARD COPY WITHIN SEVEN (7) BANKING DAYS PER BANK BONDED

COURIER AS PER INSTRUCTIONS OF OUR CLIENT _____ PLC.    AND OF THE ORIENTAL WEALTH MANAGEMENT CO., LIMITED   AS BENEFICIARY OF THIS BANK GUARANTEE  IN FAVOR OF THE THIRD PARTY NOMINATED BY THE OUR CLIENT _____ PLC.    AND OF ORIENTAL WEALTH MANAGEMENT CO., LIMITED   UPON FIRST REQUEST, FOR A PERIOD OF ONE (1) YEAR AND ONE MONTH (1) FROM THE DATE OF ISSUE OF THE MT760.

 

WE FUTHER CONFIRM THAT THE BANK GUARANTEE IS CASH-BACKED AND IS ASSIGNABLE, TRANSFERABLE AND UNCONDITIONALLY CALLABLE UPON MATURITY.

 

THIS BANK CONFIRMATION LETTER CAN BE CHECKED WITH THE UNDERSIGNED BANK OFFICERS FROM ANY PERSON HAVING BEEN DESIGNATED IN WRITING BY YOU.

 

FOR AND BEHALF OF: HSBC BANK PLC.

 

8 CANADA SQUARE, CANARY WHARF, LONDON E14 5HQ, UK

 

BANK OFFICER                                                              BANK OFFICER

NAME                                                                             NAME

TITLE                                                                               TITLE

PIN #                                                                               PIN #

PHONE                                                                            PHONE

E-MAIL                                                                            E-MAIL

SIGNATURE                                                                    SIGNATURE

 

 

 

Very briefly:
PPP is using Euro or US dollars only and NOT in other currencies.

PPP does not use assets eg artworks, copper powder, precious gems & others etc.
PPP does not use Computer blocked screen, computer printout, computer ping-ing, Euro-clear screen blocked, computer grey-screen etc.
PPP does not use SKR (safe keeping receipt) or Gold receipt, Warranty papers etc.
PPP do not use other languages except English which is the official language.

PPP has many strict criteria/conditions that must be met in accordance to its strict rules & regulations etc. Demanding, blackmailing, threatening etc is also not allowed in PPP. Asking for every detail, documents, list of clients name & their profits earned, amount invested, agreement, contract or information etc will not work. Meeting be held & discuss face-to-face only after prospects have undergone complete Due Diligence (DD) processes, Know Your Client (KYC) protocols etc
.

PPP  and Buy/Sale program with cash (the Proof of Funds)

New opportunities guaranteed programs with cash

Examples of successful programs
If your money is in the Sberbank of Russia

Cash: special hot information

PPP- explanation

 

We're provide information to help realize investment projects in countries in Europe, Asia and Africa. We bring to your attention two opportunities of financing of investment projects :

.

And now we bring to your attention the opportunities  of financing of investment projects in the World also in  Russia,  and other countries of the former USSR:

*

Classical - to use of opportunities of international Credit agencies EGAP, Hermes, KUKE S.A. and others, and also banks of WEB by obtaining loan against bank collateral TOP 100 Western European Banks (WEB)

*

Special program for real self-investors for project if you have a real funds for 20% of cost your investment project.

*

Non-traditional - Alternative Financial Investments and Fund Raising, as well as Private Placement Programs & Trade Platforms, Bank Debentures Trading Programs (strictly by invitation) and non-recourse loan.


We have direct contacts with traders and trade groups (platforms).

 

 

INVESTORS

THE representative  OF  THE INVESTOR

(not always available)

 

THE CONSULTING FIRM

COMPANY "EUROPEAN BUSINESS CREDITS Ltd"  

BROKERS/providers  LISTED BY THE TRADERS

(platform)

THE TRADERS  

FINANCIAL INSTITUTIONS

                                      

The investor is the person or entity who is rightful owner of an asset that can be used as collateral to gain access to an investment program.

 

The Assistant/Facilitator is the natural or legal person who have legal or financial education and experience which is brought by the investor in Client Information Form (to an investor of the collaterals listed).. It is the first person who should inform the investor about characteristics of this type of investment programs.

 None of our facilitators charge the investor any money up front.

   This committee is always successful. 

 

THE CONSULTING FIRM (THE COMPANY "EUROPEAN BUSINESS CREDITS Ltd") Advisers are formed by a group of suitably qualified professionals with a broad background and experience in financial matters, commercial and tax. Its mission is to educate and inform the investor and financial advisory, commercial and tax. Advisers also are responsible for assessing and monitoring the documentation submitted by investors. The consultants charge a fee the investor when the investor gets income from their investment. Never, an adviser who boasts of being so, the investor can collect money in advance.

 

 Our firm is comprised of several Economists, Auditors and Engineers with proper training and  experience.

 

 

Brokers, Trader responsible for selecting the most suitable for carrying out each investment project.

The Brokers, Trader submitted to the documentation provided by the investor. Typically, brokers receive compensation for their work, directly from the Trader.

 

Our law firm currently works with two brokers, who are the ones who give us confidence.

 

The Traders are registered and monitored by the FED. They are responsible for planning and designing the financial transaction with the entity that is selected in each case. Our Traders operating in the Secondary  Market of capital. In this market, outlining the principal investor, you cannot lose, in implementing the provisions of the International Banking Act. Never in history has given the case that an investor has lost its capital.

 

   Our Traders enjoy the full trust and confidence of our Brokers.

 

The Traders, Financial Institutions only work with top ten or AAA. Trading contracts are signed at the offices of the Bank. The investor can go to this firm with his lawyer or his personal advisor.

 

 

Currently, and following the excessive banking regulation that is implementing the American administration, our traders only deal with European Institutions. 

Program Overview:

1. Funds accepted from most banks
2. Instruments accepted from most banks
3. Leased Funds and Instruments accepted where client is signatory and beneficiary
4. SKR's accepted where asset is kept in Bank only No Depositories
5. BCL letter ONLY for HSBC London Clients MT 799 NOT required
6. MT-799 Verification Only for other bans Funds / Assets / SKR's
7. No Blocks or Delivery of Asset / Funds
8. Client can re-enter program as follows: two 1 day trades (200%), one 6 day trade (600%), one 7 day trade (700%) and one 9 day trade (900%). Client earns 100% per trading day Net 70% per trading day

Basic Procedures for 24 hour program:

1. Client submits CIS/Color Passport/BCL/Copy of Instrument (if applicable)
2. Compliance takes 2 - 48 hrs
3. Clients bank forwards MT-799 Verification Only (Non - HSBC London Banks)
4. Contract issued by Trader to Client
5. Trade starts the next day typically
6. Client receives profit next day after trade

Funds / Instruments Allowed:


Cash
BG
Promissory Notes
Bank Draft
MTN
SBLC
Corporate bonds
Most Bankable Securities
Bank SKR's
Leased Cash / Instruments

 

Private Placement Programs, how high are weekly income?

 

Seemingly every day there are hundreds of more people learning about the private placement business, usually either through online research or word of mouth. Once an exclusive opportunity which was limited to just a few privileged individuals, the private placement business is now full of thousands of professional brokers. As you would expect, some of them are very successful, but the other 99% are not!

You may ask yourself, why are private placement growing so fast when it is such a tough business to succeed in? Well its unfortunately become the nature of most humans to chase the dollar, and claims of fast money. Lets face it, if youre rich, it is rather intriguing to consider something that can double your money every month, or better!!

With all of the recent hype about private placement programs, the most common question I have received over the last few years is:

 

Ive heard of all kinds of programs out there, and I want to know, what returns are actually possible in REAL private placement programs?

Since this is such a frequent question and a critical topic to understand, we felt that an article explaining private placement yields was essential.

Below, we have listed different investment levels, and will explain what your opportunities, risks, and prospective yields could be if you found a REAL private placement trader

Please note, this is not a solicitation or description of any programs associated with InsideTrade LLC. It is rather an explanation of information we have attained from reliable sources that have been successful in the private placement business. All returns shall be considered hypothetical, and for informational purposes only.

 

Private Placement Investment

 

Levels

 

1 Million: This is the level that most investors lose money, or have less than expected success. Whether it is because they fell for the piggy back program, Bank of America program, PING program, Bullet program, or the bank instrument/ proof of funds program, most are never successful. Though there are real programs at 1M, they do NOT trade bank instruments, and offer far lower returns.

MAX POSSIBLE RETURNS: 20% per month

 

10 Million: At this level, you may be able to find legitimate private placement programs, but your success depends on if the trader will accept such a small file. Sometimes there may be other larger files applying concurrently that you can be pooled with, but your yields wont be as high as the larger file. In this case, at such a small level, it is still very tough to even be placed in a REAL bank instrument trading program. As you may know, bank instruments are cut in 100M+ increments, and even with a steep discount, you still need over 65M to purchase just one note.

MAX POSSIBLE RETURNS: 10% per week

 

50 Million: Usually at this level, you can find a trader that will combine your file with another concurrent applicant to meet the minimum needed to purchase a discounted bank instrument. Though this is possible, it is not guaranteed that you can enter into a program unless you find a REAL trader, who is happy to make an exception for you.

MAX POSSIBLE RETURNS: 20% per week

 

100 Million: At this level, the trader can purchase instruments with the line of credit that is drawn against the clients collateral. Typically, traders can make spreads of about 7-15 points on each trade (ex. buy 65% of face value, sell at 72%). In addition, there is no need to combine the account with another client, since the clients funds are sufficient to purchase the note alone. Needless to say, this dramatically increases your potential returns, and opens up opportunities for project funding and humanitarian developments.

MAX POSSIBLE RETURNS: 40% per week

 

As you may already know, there are many programs out there that may talk the talk, but when it comes to actually paying out, most of them disappear, or change the expected yields at the last minute. Though yields can be even higher for some opportunities, it is very unlikely that you will find a safe and stable program earning more profit than the numbers listed above.

Unfortunately, everyone knows that private placement brokers run the business, and the traders hide in the shadows until the clients information has been attained. For most desperate brokers, the goal is to attain as many files as possible. In having this goal, many brokers twist words and sugar coat information to get more applicants. As you can see, it is not uncommon to have inflated and unrealistic yields communicated to clients. In fact, it has become less common to speak with experienced brokers with reasonable yield expectations, than it is to speak with uneducated brokers with big promises.

Though it may be needless to repeat, be careful and use common sense when entering private placement transactions. Just like everything else, if it sounds too good to be true, it usually is.

 

 

Dear sirs.
 
On the given page of our site we try one's best to explain and clarify of using of bank instruments belonging to you in highly remunerative programs (PPP).
For maintenance of faultlessness and cleanliness of the transaction, we are ready to render organizational and methodical support to director or other representative of your company (included in CORPORATION RESOLUTION) and authorized on account - depot where the bank guarantee is deposited.
The bank guarantee should be filled, is completely let out{completely released} by bank at disposal of your company, without any conditions on its{her} payment within 3 days after verification , requirements of the proof of money under the pretext of transfer of a guarantee under the contract of cession, the requirement garanting by the party{side} of the trader (The Private Placement Financial Program Manager) SWIFT 103.23 after transfer by bank SWIFT 799 , etc. The Given requirements are regarded by office of the trader as the certificate "empty" guarantees, corruption dependence of the company - owner of the tool on bank officials in in Russia, Ukraine, Kazakhstan and the countries with developing economy. Frequently interaction with the trader comes to an end problems with the bank - emitter of the tool, the international financial scandal. To avoid a undesirable situation and to reach{achieve} the desired purpose - reception of the income, the company - investor addressed to which the bank tool is let out{released}, should provide to itself full freedom of further use of the tool, his{its} guaranteed transfer to bank of the trader according to the signed contract on SWIFT 760 without any conditions on the part of the bank - emitter.
To avoid mistakes and unforeseen losses, we always suggest the investor to prepare carefully for signing the contract with The Private Placement Financial Program Manager, to involve in negotiations and signing of the contract of the prepared legal and financial advisers to which you personally trust, and the contract to sign without haste with full understanding and the responsibility for the decisions and actions. In turn, we are ready to render you the every possible help and support.
We are capable to help to you on every possible mistakes, to offer you real profitableness, to organize signing the contract with the trader in maximum short term during (2-3 weeks after check of the tool) and to carry out support of use of the received income having excluded danger of blocking.
Our group works with offices of traders without intermediaries. Nevertheless, we against the widespread practice of transfer of the tool in so-called "management".
Trying to take in management your financial actives and independently enter programs, some intermediaries frequently promise investors " gold mountains ". However, it is far from being all intermediaries have real contacts with PPP-platforms and begin search of such contacts only after reception of your tools " in management ". It conducts to loss of time, every possible mistakes including in connection with an output{exit} on the new intermediaries declaring presence of working contacts with bank-office The Private Placement Financial Program Manager, but in practice not having those, and even on the international swindlers.
Starting{Beginning} work with bank tools, it is necessary to take into account, that advertising offers from intermediaries, and sometimes and groups of the trader, frequently differ from real offer The Private Placement Financial Program Manager which the Investor will receive at signing the contract. Initial offers from 80 % annual are possible{probable}, but offers and up to 40 % a week (and on occasion and above) are possible{probable}. The intermediary frequently pursues the purpose of reception of any profit, can agree and to less profitable offer since not always carries out of the obligations to the investor. Frequently, aspiring immediately to take hold of a part of the received income, it{he} ignores a number{line} of contract requirements of the trader that conducts to infringement of existing rules, no-purpose or to misuse of the received financial resources and as consequence{investigation}, blocking of the earned money resources. It is necessary take into account that the part of the super income should to be used in humanitarian both socially focused programs and projects, except for that the money resources received from the program cannot be divided{shared} between intermediaries and private persons any way.
We'll help to minimization of "losses", mistakes and in this respect.
The owner of the tool or his{its} plenipotentiary should be guided by the corporate instruction on use of the tool and recommendations of the qualified advisers not only at the moment of signing the contract with the trader, but also on use of the received monetary resources. Special value has correct performance of instructions The Private Placement Financial Program Manager according to requirements of the signed contract.
For the beginning works are necessary for us the following documents:
1. A colour photocopy (format JPG) the Bank guarantee which have been let out{which have been released} for the term of not less than 1 year and 1 month after its{her} verification, with the right of prolongation till 3 and more years or without those;
2. A copy of the contract of the company with bank about the Bank guarantee with the characteristic of actives on the basis of which the given tool is let out{released} also other documents concerning to ;
3. The certified photocopy of the passport for travel abroad of the representative of the company - investor authorized on account - depot.
4. Client Information Form.
4. Notary certified  the Power of attorney to the representative of the company (not being the general director).
After check of the tool, the company receives the preliminary offer on profitableness, directs a full package of documents under the given transaction (in an electronic kind) to our address, including signed by the general director of the company - owner of the tool and notarially certified contracts:
1. Joint Venture Agreement - about distribution of the income with group of the trader 5050 %.
2. NON-CIRCUMVENTION. NON-DISCLOSURE AND WORKING AGREEMENT - the contract " about non-circumvention ".
And documents:
3. ORIGIN AND HISTORY OF FUNDS
4. LETTER OF CONFIRMATION
5. AFFIDAVIT OF NON-SUBMITTAL TO OTHERS
On occasion originals specified documents should be notary certified of Switzerland, Germany or other country on demand of office The Private Placement Financial Program Manager.
After signing and transfers to us of the specified documents, occur direct negotiations on Skype to office of the trader and the place (bank) and time of the conclusion of the contract is appointed. The person signing the contract with the trader, should have all necessary codes for realization of operations with a bank guarantee in a mode from bank to bank. According to the contract, after reception pay-orders or other guarantees of reception of the income, banks exchange SWIFT MT 799 about readiness to transfer / accept on SWIFT MT 760. The bank - emitter of the tool transfers in bank of the trader on SWIFT MT 760 (or blocks on account - depot) the Bank guarantee.
According to the Agreement with the trader, the Bank Guarantee in an electronic kind will be blocked for the term of not less than 1 year and 1 month (or other term coordinated in the contract). After the expiration of the specified term, the bank guarantee will be deblocked and returned to the owner without .
For carrying out of exploratory talk and preparation of the transaction, with a view of avoidance of every possible mistakes, we suggest to include formally our representative in structure of the company - owner of the tool as financial director with granting notary certified RESOLUTION OF BOARD OF DIRECTORS with the corresponding information (without the right of signing of the contract with The Private Placement Financial Program Manager since codes of management will be known for a bank guarantee only to the representative of the company - investor having the right to sign on account - depot - . having unlimited powers and To introduce our documents to Platform and quick connection between Platform and (_______ Name of Company and ____________ Name of Director) Owner, .

Dear sirs.
We pay your attention to absolute legality of financial transactions with participation of company EUROPEAN BUSINESS CREDITS Ltd. Also we guarantee performance of our obligations.
 
We are confident, that after performance of obligations under the first transaction, our cooperation will proceed more intensively and even more productively.

Explanation of Private Placement Program (PPP)

I hope you take your time to read the below explanation about Private Placement Program. You may or may not be an Ultra High-Net-Worth Individual but i sincerely hope that you will have a better understanding on the reason & overview of the operations in a private placement program of trading. The below is for informational purposes only. This is NOT an offer to sell or solicit.

(1). INTRODUCTION

This information explains some of the obscure or unclear aspects of Private Placement Opportunity Programs (PPOPs). PPOPs are also known under other names such as Private Placement Programs (PPPs) or Private Placement Investment Programs (PPIPs). This study is the result of several years of expert personal experience & testimony, and is explained from the viewpoints of both a client and a broker.

(2). TOPICS

Before tackling the topic of Private Placement Opportunity Programs, it is important to discuss the basic reasons for the existence of this business. This discussion includes the basic concept of what money is and how it is created, controlling the demand for money and credit, and the process of issuing a debt note, discounting the note, and selling and reselling the note in arbitrage transactions.

 

(3). THE BASIC REASONS FOR PPOPS

MONEY CREATION 

First and foremost, PPOPs exist to create money. Money is created by creating debt.

For example: You as an individual can agree to loan $100 to a friend, with the understanding that the interest for the loan will be 10%, resulting in a total to be repaid of $110. What you have done is to actually create $10, even though you dont see that money initially.

Dont consider the legal aspects of such an agreement, just the numbers. Banks are doing this sort of lending every day, but with much more money. Essentially, banks have the power to create money from nothing. Since PPOPs involve trading with discounted bank-issued debt instruments, money is created due to the fact that such instruments are deferred payment obligations, or debts. Money is created from that debt.

Theoretically ~ any person, company, or organization can issue debt notes (again, ignore the legalities of the process). Debt notes are deferred payment liabilities.

Example: A person (individual, company, or organization) is in need of $100. He generates a debt note for $120 that matures after 1 year, and sells this debt for $100. This process is known as discounting. Theoretically, the issuer is able to issue as many such debt notes at whatever face value he desires ~ as long as borrowers believe that hes financially strong enough to honor them upon maturity.

Debts notes such as Medium Terms Notes (MTN), Bank Guarantees (BG), and Stand-By Letters of Credit (SBLC) are issued at discounted prices by major world banks in the amount of billions of USD every day.

Essentially, they create such debt notes out of thin air, merely by creating a document.

The core problem: To issue such a debt note is very simple, but the issuer would have problems finding buyers unless the buyer believes that the issuer is financially strong enough to honour that debt note upon maturity. Any bank can issue such a debt note, sell it at discount, and promise to pay back the full face value at the time the debt note matures. But would that issuing bank be able to find any buyer for such a debt note without being financially strong?

If one of the largest banks in Western Europe sold debt notes with a face value of 1M EURO at a discounted price of 800,000, most individuals would consider purchasing one, given the financial means and opportunity to verify it beforehand. Conversely, if a stranger approached an individual on the street with an identical bank note, issued by an unknown bank, and offered it for the same sale price; most people would never consider that offer. It is a matter of trust and credibility. This also illustrates why theres so much fraud and so many bogus instruments in this business.

LARGE DEBTS INSTRUMENTS MARKET

As a consequence of the previous statements, there is an enormous daily market of discounted bank instruments (e.g., MTN, BG, SBLC, Bonds, PN) involving issuing banks and groups of exit-buyers (Pension Funds, large financial institutions, etc.) in an exclusive Private Placement arena.

All such activities by the bank are done as Off-Balance Sheet Activities. As such, the bank benefits in many ways. Off-Balance Sheet Activities are contingent assets and liabilities, where the value depends upon the outcome of which the claim is based, similar to that of an option. Off-Balance Sheet Activities appear on the balance sheet ONLY as memorandum items. When they generate a cash flow they appear as a credit or debit in the balance sheet. The bank does not have to consider binding capital constraints as there is no deposit liability.

(4). NORMAL TRADING versus PRIVATE PLACEMENT

All trading programs in the Private Placement arena involve trade with such discounted debt notes in some fashion. Further, in order to bypass the legal restrictions, this trading can only be done on a private level. This is the main difference between this type of trading and normal trading, which is highly regulated. This is a Private Placement level business transaction that is free from the usual restrictions present in the securities market.

Usually, trading is performed under the open market (also known as the spot market) where discounted instruments are bought and sold with auction-type bids. To participate in such trading, the traders must be in full control of the funds, otherwise they lack the means buy the instruments and resell them. Also, there are fewer arbitrage transactions in this market, since all participants have knowledge of the instruments and their prices.

However ~ in addition to the open market there is a closed, private market wherein lies a restricted number of master commitment holders. These holders are Trusts with huge amounts of money that enter contractual agreements with banks to buy a limited number of fresh-cut instruments at a specific price during an allotted period of time. Their job is to resell these instruments, so they contract sub-commitment holders, who in turn contract exit-buyers.

These programs are all based on arbitrage transactions with pre-defined prices. As such, the traders never need to be in control of the clients funds. However, no program can start unless there is a sufficient quantity of money backing each transaction. It is at this point the clients are needed, because the involved banks and commitment holders are not allowed to trade with their own money unless they have reserved enough funds on the market, comprising unused money that belongs to clients, never at risk.

The trading banks can loan money to the traders. Typically, this money is loaned at a ratio of 1:10, but during certain conditions this ratio can be as high as 20:1. In other words, if the trader can reserve $100M, then the bank can loan $1B. In all actuality, the bank is giving the trader a line of credit based on how much money the trader/commitment holder has, since the banks wont loan that much money without collateral, no matter how much money the clients have.

Because bankers and financial experts are well aware of the open market, and equally aware of the so-called MTN-programs, but are closed out of the private market, they find it hard to believe that the private market exists.

(5). ARBITRAGE AND LEVERAGE

Private Placement trading safety is based on the fact that the transactions are performed as arbitrage transactions. This means that the instruments will be bought and resold immediately with pre-defined prices. A number of buyers and sellers are contracted, including exit-buyers comprising mostly of large financial institutions, insurance companies, or extremely wealthy individuals.

The issued instruments are never sold directly to the exit-buyer, but to a chain of clients. For obvious reasons the involved banks cannot directly participate in these transactions, but are still profiting from it indirectly by loaning money with interest to the trader or client as a line of credit. This is their leverage. Furthermore, the banks profit from the commissions involved in each transaction.

The clients principal does not have to be used for the transactions, as it is only reserved as a compensating balance (mirrored) against this credit line. This credit line is then used to back up the arbitrage transactions. Since the trading is done as arbitrage, the money (credit line) doesnt have to be used, but it must still be available to back up each and every transactions.

Such programs never fail because they dont begin before all actors have been contracted, and each actor knows exactly what role to play and how they will profit from the transactions. A trader who is able to secure this leverage is able to control a line of credit typically 10 to 20 times that of the principal. Even though the trader is in control of that money, the money still cannot be spent. The trader need only show that the money is under his control, and is not being used elsewhere at the time of the transaction.

This concept can be illustrated in the following example. Assume you are offered the chance to buy a car for $30,000 and that you also find another buyer that is willing to buy it from you for $35,000. If the transactions are completed at the same time, then you will not be required to spend the $30,000 and then wait to receive the $35,000. Performing the transactions at the same time nets you an immediate profit of $5,000. However, you must still have that $30,000 and prove it is under your control.

Arbitrage transactions with discounted bank instruments are done in a similar way. The involved traders never actually spend the money, but they must be in control of it. The clients principal is reserved directly for this, or indirectly in order for the trader to leverage a line of credit.

Confusion is common because most seem to believe that the money must be spent in order to complete the transaction. Even though this is the traditional way of trading buy low and sell high and also the common way to trade on the open market for securities and bank instruments, it is possible to set up arbitrage transactions if there is a chain of contracted buyers.

This is why clients funds in Private Placement Programs are always safe without any trading risk.

(6). HIGH YIELD

Compared to the yield from traditional investments, these programs usually get a very high yield. A yield of 50% 100% per week is possible.

For example: Assume a leverage effect of 10:1, meaning the trader is able to back each buy-sell transaction with ten times the amount of money that the client has in his bank account. In other words, the client has $10M, and the trader is able to work with $100M. Assume also the trader is able to complete three buy-sell transactions per week for 40 banking weeks (one year), with a 5% profit from each buy-sell transaction:

(5% profit/transaction)(3 transactions/week) = 15% profit/week

Assume 10 x leverage effect = 150% profitPER WEEK! Even with a split of profit between the client and trading group, this still results in a double-digit weekly yield. This example can still be seen as conservative, since first tier trading groups can achieve a much higher single spread for each transaction, as well as a markedly higher number of weekly trades.

(7). CLIENTS

The involved clients (program clients) are not the end-buyers in the chain. The actual real end-buyers are financially strong companies who are looking for a long term, safe investment, like pension funds, trusts, and insurance companies. Because they are needed as end-buyers, they are not permitted to participate in-between as clients. The client who participates in a PPOP is just an actor in the picture along with many other actors (issuing banks, exit-buyers, brokers, etc.) who benefit from this trading. Usually, the client does not interact with others involved in the process.

(8). PROGRAM STRUCTURE

Normally, a trading program is nothing more than a pre-arranged buy/sell arbitrage transaction of discounted banking instruments. Theoretically, an client with a large amount of funds (on the level of $100M $500M USD) could arrange his own program by implementing the buy/sell transaction for himself; however, in this case he needs to control the entire process, initiating contact with the banks and the exit buyers at the same time. This is not a simple task, considering the restrictions in place.

For a client it is much simpler (and usually more profitable) to enter a program where the trader and his trading group have everything in place (the issuing banks, the exit buyers, the contracts ready for the arbitrage transaction, the line of credit with the trading banks, all of the necessary guarantees/safety for the client, etc.). The client needs only to agree with the contract proposed by the trader, disregarding any other underlying issues.

It is further advantageous for the client to enter a program with a substantially lower amount of money and benefit from the line of credit offered by the trading group.

(9). NON-SOLICITATION AND NON-DISCLOSURE

As a direct consequence of the PPOPs environment where this business has to take place, a non-solicitation agreement has to be strictly followed by all parties involved. This agreement strongly influences the way the participants can interact with each other. Sometimes non-solicitation agreements foster scam attempts, due to the fact that at an early stage it is often difficult for the clients to recognize reliable sources to be in contact with.

There is another reason why so few experienced people talk about these transactions: virtually every contract involving the use of these high-yield instruments contains very explicit non-circumvention and non-disclosure clauses forbidding the contracting parties from discussing any aspect of the transaction for a specified number of years. Hence, it is very difficult to locate experienced contacts who are both knowledgeable and willing to talk openly about this type of instrument and the profitability of the transactions in which they figure.

This is a highly private business, not advertised anywhere nor covered in the press, and is closed to anyone but the best-connected, most wealthy entities that can come forward with substantial cash funds.

(10). HOW BANKS AND BROKERS CAN PROFIT

Banks are not allowed to act as clients in such programs. However, they are able to profit indirectly in different ways. This fact permits some private brokers, trading groups, and clients to take part in this process that otherwise would be a banking matter only. The assets coming from private clients are necessary to start the process. These private, large funds are the mandatory requirement for the buy/sell transactions of banking debt instruments. Brokers are necessary to introduce the clients to the trading groups. Thus, each of the involved parties takes their part in the sharing of the benefits, commissions for banks and brokers and proceeds for trading groups and clients).

(11). PROJECTS

The purpose of this type of trading is to finance projects, not generate tremendous profits for the client. These may be for-profit or non-profit and can be funded as a result of this trading. Since this type of trading generates such large amounts of money on the market, measures must be taken to keep the inflation low. One way to do this is to adjust the interest rates, but this usually has little or no effect. A better way to minimize inflation is to let some of the profit be used for different projects that need funding, such as rebuilding infrastructure in regions of the world that have experienced catastrophes or war.

PROCESS SYNTHESIS

The complete process involving the issuing of debt-notes, the arbitrage transactions, the programs, and the projects is a result of combined market forces. Banks have a method of increasing their revenues and profits, clients are able to finance different ventures, and borrowers are able to access loan funds. There is a supply and demand for such instruments, and as long as the supply and demand exists then also this kind of trading will exist.

(12). PROCESS SUMMARY

The following is a summary of the process involved for entering a PPOP:

A client with a minimum of 100M applies for a Private Placement Opportunity Program.

This business is entirely private. To get access to these investment programs, the client needs to send his preliminary documentation to a broker whom the client trusts to be in direct contact with the trading group. That means a Client Information Sheet, a copy of their passport, and a bank statement showing the balance of funds being committed for trade. It is generally required that the bank statement be signed by two authorized bank officers to make it full bank responsibility. There is no other way for the client to get contact with the trading group. After the client has sent his own paperwork (their Passport, Client Information Sheet, and recent bank statement showing cash), the trading group will investigate the applicant. If the response is positive, the program manager in the trading group will contact or meet with the client. If the investigation is not favourable, the program manager will contact the broker and tell him that the client did not qualify.

During the contact with the client, the trader will explain the program terms/conditions to the client, and outline the guarantees and requirements to start the program. The client will get instructions to open a new sole signatory bank account at the trading bank for transferring the funds there.

The client will receive a contract which states the total gross yield, the percentage of the gross profit reserved for projects, the percentage for the trading group and the percentage for profit participation fees to be deducted for brokers/intermediaries. The net return to the client will be wired to another account that can be located in any bank worldwide. If the client accepts the contract, the contract is signed and the program is ready to start.

The trader is now able to leverage the clients reserved money 10 times, and is now able to back up the arbitrage transactions with that money, a credit line that remains in the bank account that is screened before each arbitrage transaction. Trading now continues, and the profit is paid out per the contract terms to the client.

The programs work with cash only or gold bullion. This fact means that the client will only be accepted with liquid funds. Recent rulings by the G20 prohibit the use of an asset other than cash or gold bullion in a bank vault. A line of credit must be established and drawn down into an account at a bank, where it is lodged and blocked.

(13). ANALYSIS OF RISK INVOLVED IN PPOP CONTRACTS

Finalizing PPOP contracts with clients can be a stressful process because of problems encountered along the way.

FROM THE CLIENTS SIDE

The applicant client will not be able to meet directly with the trader in this business. The main reason why theres a broker-intermediary chain is because the people in the trading groups have no time or interest in meeting all the people who are just fishing for information, and/or who fail to qualify because they dont have enough money, or have useless bank instruments. If youre a qualifying client, truly connected intermediaries / brokers should be able to place you in contact with a performing trading group. Dont attempt to find a trader on your own: Most so-called traders in the financial world are not involved in this kind of trading and are not educated to their existence. Those few traders who are keep a low profile and would never talk with a client who hasnt been cleared. In fact they cannot until the client passes the international KYC (Know Your Customer) compliance.

When it comes to cases of non-performance, the problem is usually on the client side. The client doesnt qualify for a variety of reasons; he doesnt have enough money, the bank is too small or is located in the wrong country, he cannot move his funds, etc.

Oftentimes deals are killed because the broker and/or intermediary dont understand the process, and inject themselves, more concerned about a fee than about allowing the two principals (Client and Trader) to interact without interference.

Some of the most common reasons why clients are never able to enter this kind of trading are:

  They dont have enough money or workable assets

  They dont have the money in an acceptable bank

  They dont have full control of the money (or of the bank instruments)

  They dont have a good explanation of the origin of the money

  They do not follow the required procedure

  They do not collaborate enough with the Trading Group

  They delay the delivery of documents or send fake or non-confirmed documents

  Their identity cannot be confirmed

  They are blacklisted or under investigation.

Remember that the trading group does not have to give any explanation why the client doesnt pass through the clearance.

Clients should understand what is required to qualify:

  A minimum of $100 Million EURO or USD in cash located in a major bank in Western Europe, USA, Canada, Hong Kong, Singapore or Australia. Additionally, the money needs to be traceable with a non-criminal history.

  The client, or company if one is represented, should be clearly identified.

  Once cleared, clients are invited to the table, but their acceptance is never guaranteed, regardless of their assets or prominence.

  The client himself must be the one and only person that the trading group deals with. He is not allowed to let his lawyer or any other person perform or act on his behalf, brokers included. If the client does not speak English and needs assistance, then he must sign a Limited Power of Attorney for a translator. The LPOA will only be accepted for communication purposes, and the must still sign all the documents.

Clients who have the least amount of money are always placed last in the queue. A client with 100M will get more attention than a client with 10M. Clients who have assets other than cash or AU bullion in a bank vault will also always be placed last in the queue, if they are accepted at all. Assets other than cash or gold bullion must be monetized to provide cash for the trading account. It is difficult for any client to ensure that he meets the right people; those few intermediaries and brokers who know the process and who are working with a performing trading group. The best he can do is to educate himself and not be lured by those who claim that their program will give the highest yield. He must also be patient, and trust the legitimate intermediary or broker. There is no way that the client will directly meet with the trade group before he has been cleared.

If for any reason the client is dissatisfied with the broker and/or intermediary, then another one can be obtained.

These are some of the main risks the client can meet:

  Nothing will come out of the trade; no contract and no profit, just frustration after weeks/months of waiting.

  Clients or their intermediaries and/or brokers are shopping around with client documents, which sooner or later will result in blacklisting.

  The client is told that he must move his funds out of his own control; to an escrow account, etc.

  The client is told that he must buy or lease a bank instrument for his money. In the worst-case scenario this instrument is a fake, or impossible to use.

  The client is told that he must pay upfront fees, because a leverage of his funds must be done, or some bank instrument must be discounted, or banking fees must be paid, etc. The upfront fees paid are lost, and nothing more will happen.

FROM THE BROKERS AND INTERMEDIARYS SIDE

There is a common misuse of such terms as brokers, intermediaries, and facilitators. The fact is, these are not official terms in banking or finance, but such terms are used within trading groups and in their communication between each other. Although a broker or an intermediary can claim that they are in direct contact with a person carrying that title, it is not a guarantee of anything. Any person can fraudulently call himself a trader, or a commitment holder, or whatever. And since such positions cannot be verified (at the first stage), such titles can be meaningless as seen from the clients point of view.

There is almost always a chain of trading group, a broker and intermediary and client. This is for two reasons.

Firstly ~ trading groups, brokers, and intermediaries are not allowed to solicit; the Client must start by asking for information.

Secondly ~ this protects all parties involved with the trading group. Brokers may work through several intermediaries, and vice-verse intermediaries. A chain of more than one or two intermediaries connected directly between the two Principals, in general, is not acceptable to some program providers.

A good broker should also screen the potential clients, filtering the most promising applicants and at the same time collecting from them the proper documentation. In this way, the trading group receives workable documentation from the broker.

The most common risks or problems that a broker, an intermediary or a facilitator can meet with in this business are:

  They may need to investigate dozens of clients before finding a qualified applicant.

  They may discover the assets of client to be unworkable after weeks or months of processing.

  They may have difficulty qualifying themselves with new clients because they cannot show any past performance or past contracts. The relationship with the client is just a matter of trust at an early stage.

There could be several levels involved for the intermediaries. The closest one to the trading group (sometimes called also facilitator) is the most important person. This person should have a direct contact with the trading group. Any other broker beneath the facilitator has a lower value in the hierarchy. The broker and/or the intermediary can have problems showing the client his level in the hierarchy at an early stage.

(14). SCAMS

From time to time you may hear about scams (or potential scams) in the High Yield Investment Programs arena. One of the conditions that facilitate scams in this business is due mainly to the non-solicitation environment and the private approach required that forces information to remain as pure whispered gossip ready to be expressed aloud at any time. That fact facilitates a diffuse level of ignorance in this matter where scammers are in their element.

Possible scams include:

  The intermediary asks for up-front fees (in a real situation no one will ask for up-front fees to the client).

  You are asked to transfer the money into an escrow account not in full control of the client.

  You are asked to buy a bank instrument against the funds to start the program (that later will be discovered to be of no value).

  You are asked to pool the funds together with other little clients.

The internet is now full of different money-making opportunities that promise to return a high yield on the small clients money. In most cases such programs are Ponzi schemes (pyramid schemes). And even if a few might be managed by honest people who are trying to aggregate enough funds in order to enter this kind of trading, they are doomed to fail. First there is the problem with pooling a 100M minimum. In many countries, it is illegal to pool money with promises of a high return. Factor in the problems with high numbers of participants being managed, the trust factor, and clearance issues, trading may never begin

However, the main scams are usually made or attempted with small clients that never will qualify as PPOP clients. Usually, it is very rare that an honest client with 100M can fall into this kind of trap. Larger clients are investment savvy and can utilize the knowledge of other financial experts to drive the deal on a safety road.

(15). USE OF LAWYERS FOR ADVICE AND GUIDANCE

It is the writers opinion that lawyers and accountants are engaged to serve as people who execute agreements or financial reports between the principals in support of the clients business decision made between two parties. In most general cases, their advice is solicited, however, it is rare to find an attorney who is intimately familiar with PPOPs. As a result, almost always, the client is poorly advised by practicing attorneys who are not sufficiently educated in this arena. Would you go to a podiatrist to get advice on having brain surgery?

Too often, because of their well-deserved achievements to become a legal or accounting professional, they are additionally asked to guide and direct the clients decisions. Whilst they are trained professionals in their respective fields, they are not the ones who should be in charge of or direct the clients ultimate business decision. As a result, typically ill-advised input comes from a lack of understanding in this arena, and many clients who otherwise would have benefited well are told to stay away by their advisors. Even though they will believe or state they are protecting the client, the lost opportunity because of that advice is extraordinarily costly. Both have their place, but should not be guiding a decision in this world if they are not experts. The final decision rests with the client.

(16). WARNING ON SCAMS

It is very common to find so-called Official Reports warning the public that this business does not exist and any of these offers are scams.

The reports in question could have been written by the SEC, FBI, ICC or any other regulatory authority. You should be aware that official documents like the Commercial Crime Services Special Report on Prime Bank Instruments Frauds by the ICC Commercial Crime Bureau are widely spread and used as a reference by banks, accountant firms, lawyers, SEC, FBI, and other authorities around the world. So, if the ICC says that this is a scam, and your accountant says that this is a scam, and your banker says that this is a scam, is it a scam?

Understand ~ most people working at banks, securities houses, and accountant firms have no insight into this kind of trading. So, if the SEC, FBI, and others say that this is a scam, then they believe it to be so?

(17). CONCLUSION

Obviously, it would not be a good idea to reveal everything regarding this type of trading in this writing, or on any other public conference or forum. This kind of trading can only continue because it is unknown to the public and traditional clients. The professionals in this business must be extremely cautious when it comes to sharing information.

Learn and understand monetary history and banking, and it will become clear why this type of trading can and does work.

As stated above, any Upfront Payment for PPP is a serious offence and the punishment is mandatory fine and/or jail or both! Below are some other useful information for your reference:

 

(1). PPP only use Euro or US dollars and NOT in other currencies.

(2). PPP does not use physical assets (eg land, artworks, paintings, copper powder, nickel, precious stones & many others etc) .

(3). PPP does not use Computer blocked screen, computer printout, computer ping-ing, Euro-clear screen blocked, computer grey-screen etc.

(4). PPP does not use SKR (safe keeping receipt) or Gold receipt, Warranty papers etc.

(5). PPP does not use Lease Bank Instrument because you are NOT the real owner.

(6). PPP only use English which is the official business language.

There are many other strict criteria and conditions that must be met in accordance to its strict rules & regulations etc.

 

Demanding, blackmailing, threatening etc is also not allowed in PPP. Asking for every details, documents, list of clients name, amount invested, agreement, contract, or information etc but prospects refuse & reluctant to submit anything will not work at all.

I hope the above explanation have shed some light and that you have gained useful information about the insight of Private Placement Program. Let me know if you have any question or you are seriously keen to participate and make legal profits.

PRIVATE PLACEMENTS & PRIVATE TRADING

CORRECT PROCEDURES FOR THE HYPOTHECATION

OF FINANCIAL INSTRUMENTS/ASSETS

 

Generally

 

There appears to be significant confusion in the minds of both Applicants and their Introducers regarding the legally correct way to deal with the Hypothecation of Financial Instruments/Assets for the purposes of Private Placements and Private Trading.

Private Placements and Private Trading are operated by Traders either directly of indirectly through Asset Management Groups and Trade Platforms where credit is created to enable Trading to take place within a very privately operated segment of the financial and banking arena.

It is not possible for any Trader to trade anything without Cash or Credit. This has to be supplied by the Applicant in one way or another, either directly, as Cash or indirectly as a Financial Instrument/Asset.

To obtain a Trade Contract the Applicant has to commit his or its own Cash, or a beneficially owned and acceptable Investment Grade Financial Asset or Bank Credit Instrument, in one way or another to the Trader, Trade Platform or Asset Management Group.

Most Applicants understand and accept that Cash is normally committed relatively simply - there are a few simple procedures mainly involving Swift Mt 760s or similar arrangements.

Although of course matters have become complicated by the concept that certain Trade Structures can and do operate from time to time with limited forms of Cash Commitment Avoiding MT 760s or similar, but not all Traders and Trade Platforms support such Arrangements or can create them all the time and many structures are only available for Depositors within certain Banks.

But these concept cannot and do not exist in such simple ways in the area of Financial Instruments/Assets.

Most Applicants do not understand and accept the very precise way in which credit is required to be created by the utilization of Financial Assets, and Financial Instruments including Bank Credit Instruments.

Cash Credit can only be obtained by either selling the asset to create cash to simplify the proposed arrangements - or - by borrowing against the asset value to create cash.

In most cases the Asset Owner is generally unwilling to sell the asset to create free and clear cash, and, surprisingly enough, is usually incapable of arranging a loan against the assets value, and then creating free and clear cash.

So in most cases the Asset owner prefers the Trader, Trade Platform or Asset Management Group to arrange a loan against the value of the Asset. But for this to occur the Asset Owner has to co-operate fully with the organization arranging the funding of the Asset.

This is formally arranged by the concept of Hypothecation:

Hypothecation is the practice where a borrower pledges collateral to secure a debt, or a borrower, as a condition precedent to a loan, has a third party (usually an affiliate) pledge collateral for the borrower. The borrower retains ownership of the collateral, but it is "hypothetically" controlled by the creditor in that he has the right to seize possession if the borrower defaults Credit can only be obtained by the Owner, or by a Beneficiary with a legitimate registered Assignment.

The first requirement before any Trader, Asset Manager or Funder will consider making any commitment to the concept of the hypothecation of any Financial Instrument or Asset is the provision of a copy of the Instrument of Title and a copy of the Safekeeping Receipt or Account Statement, showing the Issue, Depository and Ownership details for evaluation purposes.

And this is usually where the first problem arises.

If the Applicant cannot provide both a copy of the Instrument of Title and a copy of the Safekeeping Receipt and relevant statements of Issue and Account etc. then there is a fundamental and irresolvable problem. This problem is not resolved by Applicant stating that the Instrument of Title is On Euroclear - DTC etc. Euroclear/DTC documentation is normally only a part of all relevant information and documentation.

And Euroclear/DTC is further complicated by it being divided into two separate parts - Securities and Banking with different structures and operational characteristics.

All Financial Instruments, regardless of whether they are or are not on Euroclear or DTC, are in Safe Keeping at a Bank or a Securities House, or other major Institution, as Euroclear or DTC, are not themselves Safekeeping or Depository Institutions, and all Financial Instruments are capable of being confirmed and verified interbank/inter institution, usually by the Bank or Institution that issued the Instrument or if not the same, then the Institution that holds the Safekeeping and to the Traders or the Asset Managers Bank or Institution. Verifying via Euroclear/DTC may be a part of the process, where applicable, but it is not the whole of the process and by itself is never acceptable.

To further complicate the matter some Financial Instruments are issued in a format where they are, for a variety of complex reasons, only effectively issued by the issuing bank via Euroclear/DTC Banking structures and the Beneficiary may not actually receive Confirmation to his own Bank but may only receive it by appearing as Beneficiary on Euroclear/DTC screens, and the Beneficiary may be the Beneficiary of an asset that can only be verified via Euroclear/DTC Banking screens, and where the Safekeeping resides in the Issuing Institution and usually not in an account in the in the Issuing Institution that the in the name of the Beneficiary that the Beneficiary is actually in control of. These Instruments are frequently referred to as Screen Only Instruments. Some may be utilizable for credit under certain restricted conditions but most appear to be Leased or Rented Instruments that are rarely, if ever, utilizable for credit.

So to simplify matters it is advisable that every Applicant should have not only the documentation of Title, but also a Safe Keeping Receipt or Account Statement for their instrument in their own name and that is both confirmable and verifiable interbank and in some cases, additionally through Euroclear/DTC, depending upon the type of Asset.

As credit cannot be created without the hypothecation of the Asset, a standard set of Banking and Security procedures must be followed to achieve this.

To reach this point a full Compliance Package must be submitted by the Asset Owner as Applicant containing full details of the Asset Owner, the Asset, its History etc. and full documentation evidencing the Asset and its ownership and safekeeping etc.

Presuming that both the instrument and the owner of the instrument are acceptable to the Trader and Asset Manager and Funding Institution and can pass all compliance and due diligence requirements of the receiving financial institution for the purposes of the proposed transaction, etc. then the Trader, Asset Manager or Funder will set up the hypothecation arrangements by facilitating the account(s) at the Traders, Asset Managers or Funders Bank or Institution and will arrange with the Applicant for the Transaction, the Asset Owner, for the Asset/Credit Instrument to be evidenced and confirmed through the Applicant and the Applicants Issuing and/or Safekeeping Institution on an Inter Bank and/or Inter Euroclear/DTC basis.

A Contract between the parties will set out the transaction arrangements after all compliance approvals. This may be a Trading Contract an Asset Management Contract or any variation of them.

After verification of the Asset/Credit Instrument and Contract completion etc. the Applicant will be issued with specific instructions requiring the Applicant to arrange via his Bank or Institution to assign or transfer the Asset/Instrument in accordance with standard banking industry protocols applicable to the type of Asset/Credit Instrument for the purposes of the creation of credit in the form of a freely available cash facility available to the Transaction Counter Party at the Transaction Counter Partys Bank.

The Asset will then require to be pledged by the Transaction Issuing/ Safekeeping/Depository Bank or Institution on an Inter Bank basis.

Depending upon the classification of the Asset or Instrument this could be by Inter Bank Responsible SWIFT MT 542/760 etc.

Certain categories of asset may be discounted for immediate cash by title being transferred irrevocably to the Funder, but in most cases the asset is hypothecated for credit by the Transaction Counter Party to create a credit line or a repayable loan and usually for a limited period and usually with the intention of the Asset or Instrument backing the Credit Line or Facility being returned unencumbered to its Owner at the end of a specific period.

After transfer, assignment and hypothecation the net loan proceeds are committed to a Trading Structure.

The arrangements will be organized so that the Trading Structure:

i creates profits for the parties involved and ii ensures that the credit facility secured on the asset/credit instrument is released prior to the relevant maturity date of the asset/credit instrument - or earlier and iii ensures that there will be no default in repayment etc. of the loan proceeds etc. iv utilises the credit for the purposes of the trade structure in accordance with the terms of the contract The Applicant must therefore provide an acceptable Asset.

In most cases the Asset must be considered to be Investment Grade (see definition).

The Asset must be Owned Free and Clear of any Liens and Encumbrances.

The Asset must currently On Deposit/In Safekeeping at a major Bank or Institution and evidenced and proven by The Relevant Documents.

Without this proof by the relevant legal documents and verification the matter cannot correctly proceed.

Without an appropriate and legally structured assignment by an acceptable Bank or Institution to a Bank of Institution for credit purposes this matter cannot correctly proceed.

In addition it is absolutely essential that the Applicant is able to commit himself/itself as follows:

1. The Applicant must be able (after signing the Trading, Asset Management or Hypothecation Agreement etc.) to either move, transfer or assign the instrument into the designated Funding bank, in accordance with standard banking and security industry protocols. It will remain in safekeeping to the benefit of the Funder for the duration of the hypothecation period.

2. If the Applicant and/or the Applicants Issuing or Safekeeping Institution is unable or unwilling to carry out these requirements then the transaction cannot proceed further as this is an absolute requirement for the hypothecation of any instrument and the creation of credit.

3. The Trader, Asset Manager or Funder will only contract with the actual, legal and beneficial owner of the Instrument/Asset for the hypothecation and subsequently for the trade program based on the cash or credit created from the Instrument/Asset etc.

4. An Assignee of an Asset/Instrument may not necessarily qualify as the owner for the purposes of the establishment of any Trade Program etc. Detailed information will be required in all such cases to identify the relationship between the relevant parties.

5 A Joint Venture Partner who does not control the ownership of the Asset/Instrument does not normally qualify as the owner in these circumstances.

6 Leased instruments may under limited circumstances be utilized in such arrangements but can never be used for hypothecation unless the Lessee/Applicant has full control and authority over the instrument and the Lessor will allow the instrument to be moved, transferred or assigned for credit purposes, free of any liens, encumbrances and contingences being placed on the instrument, at the point of movement, transfer or assignment, and will allow its future encumbrance.

No Trader, Asset Manager, Trader or Funder will accept an undertaking of any sort to pay any fees, costs or expenses in advance of the creation of credit, but there may be an arrangement to meet certain costs out of the credit line after it has been created.

The following are the basic tests to validate ownership:

A. the owner must be the party that is named as the beneficiary on the Asset/Instrument, and the safekeeping receipt and institutional account statement, and,

 B. the beneficiary must be the party that the account officer at the Issuing and Safekeeping bank/Institution recognizes and acknowledges as the owner, and is confirmed in the bank/institution confirmation letter; and,

C. if the Asset/Instrument is on Euroclear/DTC, the Beneficiary must be the registered beneficiary on Euroclear/DTC with FULL control over the Asset/Instrument and the Beneficiary must provide details of the Safekeeping of the Asset All of the documentation provided must show this.

The technical issues that often create difficulties are related to the fact that an Asset or Bank or other Credit Instrument is created by an Applicant, in favour of a Beneficiary and in many cases the Applicant and the Beneficiary are not or appear NOT to be one and the same. So the question that arises is what is the relationship between the parties that has resulted in one party creating an asset in favour of a different party?

This may be acceptable under certain conditions and circumstances where there is a disclosed and acceptable financial arrangement between the parties, for example, in project funding arrangements, and where the Beneficiary has full control over the Asset/Instrument and it is freely available to be pledged or hypothecated for credit, but is rarely ever acceptable under other circumstances as this usually indicates a Leasing Arrangement and an inability of the Applicant to demonstrate total control over the instrument and provide the instrument under acceptable conditions for funding purposes.

The questions that therefore arise and require clarification are:

a-are the Applicant and the Beneficiary of an Asset/Instrument one and the same, or if not,

b-what is their relationship and why is the Applicant providing an Asset/Instrument in favour of the Beneficiary

c-are the parties involved capable of arranging the delivery of the Asset/Instrument for pledging/hypothecation in an acceptable manner

The answers will determine:

- whether any credit available at all - and

- whether the Asset/Instrument or the Cash derived from it qualifies to be used for any Private Placement or Buy/Sell Transaction

The same principles apply in relation to any Asset owned by one Party and Assigned to the Benefit of another Party.

The verification process must verify the matters beyond any doubt.

 

Initial Procedures

1. Applicant/Asset Owner issues and sends the following documents to Trader/Asset Manager/Funder:

(specific Transaction sensitive and coded compliance documents will be provided):

Letter of Intent

Fully detailed copies of the Asset and Safekeeping Documentation, including copy of the instrument and the safe keeping receipt - issued by the Issuing Institution and  Safekeeping Institution, Bank and Euroclear/DTC documentation etc. (without all of these specific documents no one can move forward).

Client Information Sheet

Authority To Verify Asset

Corporate resolution (if a corporation) prepared in required format authorizing the transaction, use of instrument/asset and designating the signatory etc.

Other Compliance Documentation as determined by the Trade Platform

Enlarged copy of the Signatorys Passport

List of projects that will be funded with the net earnings (if required by the transaction - in certain cases the Applicant MAY be required to deploy 70/85% of the net earnings for project funding).

2. Trader/Asset Manager/Funder will then review all compliance information and carry out compliance and due diligence enquiries in respect of the Asset, its existence, its ownership, the history of issuance and ownership etc. and the asset owner, to determine the acceptability of the asset, for credit purposes, the acceptability of the asset owner, and the acceptability of both for transactional purposes.

3. Subject to the above the Trader/Asset Manager/Funder will establish a transaction and produce a contract for the transaction. The contract will normally be in the format of an Asset Management Agreement and will include the terms of the Credit and Trading arrangements etc. and contain the Banking protocols required to be carried out by the Asset Owner and the Asset Owners Safekeeping Bank etc. to commit the Asset to the Trader/Asset Manager/Funder for credit purposes.

4. In certain cases where Applicant is a Corporation the Applicant may be required to sign a second Corporate Resolution (prepared by Trader/Funder) appointing one of the officers of Trader/Funder as a Director of the Corporation for the Transaction on behalf of the Corporation etc. & empowering the Appointee to act on behalf of the Applicant, with the authority to hypothecate the instrument/asset on behalf of the Corporation and also to place and trade the proceeds in Traders/Asset Managers/Funders Private Placement or Private Trading transaction.

If the owner is not an entity, but an individual, then this empowerment, if required may be via a Special Power of Attorney.

5. Alternatively the Asset will be committed to the Trader/Asset Manager/Funder by Inter Bank and/or Inter Euroclear/DTC free delivery.

6. Alternatively the Asset will be Reserved or Blocked by Inter Bank Swift MT 760 in favour of the Trader/Funder

 

Hypothecation Procedures

1. Applicant must instruct their current Depository/Safekeeping bank to deal with the

Asset in accordance with the procedures agreed between the Asset owner and the Trader/Asset Manager/Funder and incorporated within the Contract.

If the instrument is on Euroclear/DTC, the delivery must normally be via Euroclear/DTC Free Delivery and committed by an acceptable Institution.

If the instrument is not on Euroclear/DTC, the delivery must be via a Swift MT 760 or other Swift, as applicable, based on the nature of the instrument.

Further, the Asset owners bank must be prepared to confirm their sending of all Swifts and if appropriate, the change of Safekeeping or the physical transfer of the Asset in accordance with all appropriate Banking and Securities protocols for creation of credit facilities by hypothecation of the asset.

2. Upon receipt, validation and authentication of the financial instrument, by the funding bank, the Trader/Asset Manager/Funder will facilitate the hypothecation of the Asset, and such hypothecation will normally require the issuance of a deed of assignment of the financial instrument/asset to the funding source, normally for a period of thirteen (13) months.

3. After offsets for the loan fees and costs, brokers fees, any other agreed fees, costs

and expenses, the Asset Owners pre-trade distribution (if any), the net proceeds of the hypothecation will be placed in the designated Account at the designated financial institution where the Credit Line Funds must remain for the duration of the Trading Contract period.

4. Provision is normally made to allocate an amount of the profits into a sinking fund to ensure that there are funds for the repayment of the loan and the redemption or return of the instrument/asset at the conclusion of the hypothecation period.

5. The final calculations and distributions of funds from the hypothecation are subject to the validation, authentication and evaluation of the financial instrument/asset, the offered loan to value, current interest rates; and current fees and costs.

 

Acceptable Assets for Hypothecation

(subject to evaluation etc.)

In general Financial Assets should be of Investment Grade status. Generally Investment Grade Assets are Bonds or Other Financial Obligations that are issued by Issuers that are judged by the rating agencies as more likely to meet payment obligations and that other banks or investment institutions may reasonably invest in or lend funds against. These Ratings issued by Standard and Poors, Moodys, Fitch etc. cover both Short and Long Term Issues.

Acceptable Assets comprise:

Bank Instruments in an Internationally acceptable format issued by major international

banks eg: Unconditional Bank Guarantees, Letters of Credit etc. Certificates of Deposit

Bank Issued Medium Term Notes in an Internationally acceptable format issued by major

International banks Certain Investment Grade Bonds/Securities issued by major Countries, Governments, and Internationally recognized Banks and Corporate Issuers.

United States Securities such as US Treasuries AU Bullion in Safe Keeping in major International Banks with full Documentation.

Certain Other Assets where a major International Bank has provided a Safe Keeping Receipt for a Guaranteed Value.

Certain Other Assets where a major International Insurance Company (AA+ or better) has provided an Insured Guarantee of Value (Wrap) NB: Most Third-World and Developing Nation Country and Bank instruments are usually unacceptable as to Value & Performance. In most cases where the Instruments may have value the Central Banks and the Commercial Banks in these countries can rarely be relied upon to perform their obligations correctly. The same is usually the case with Assets or Bank Credit Instruments from The Philippines, Indonesia, Venezuela etc.

No Bank in mainland China can usually send a MT 760 until and unless they have specific permission from the Central Bank of China (rarely available).

However there are certain Traders, Trade Platforms, Asset Managers and Funders that have credit lines available from time to time for non investment grade assets.

Non Investment Grade assets may include Government Bonds or Guarantees from Countries not normally regarded as of Investment Grade status and also obligations of banks not normally regarded as of Investment Grade status and of banks in countries other than mainstream American/European/Asian regions etc.


 Notice:

This information does not constitute an offer, solicitation or recommendation to invest in, pledge assets, buy or sell any securities or anything else whether for investment, or any other purposes, nor an offer, solicitation or recommendation of any investment of any other kind. The words Investor or Applicant or similar, as used herein does not signify that any party to whom this might apply is or is not an investor in the normal sense of buying or selling or investing in anything under the control or supervision of any regulated party or market or institution etc. The words Trader, Trade Group, Trade Platform, Asset Manager or Funder or similar as used herein do not signify that any party to whom this might apply is or is not an a party recognized as financially registered or authorized to operate any financing structure, or to manage any funds or assets, or to manage the purchase and sale of investments in the conventionally accepted medium of buying or selling or investing in anything regarded conventionally as an investment or security or is necessarily under the control or supervision of any regulated party or market or institution etc. Any party distributing this information is not necessarily a licensed investment or securities broker; nor is any party distributing this information or any of that partys associates or affiliates necessarily affiliated with, or endorsed by any financial institution, supervisory organization, government or government agency. Nothing herein should be considered personalized legal, accounting or investment advice. Everything referred to and/or included herein is subject to appropriate institutional and other

compliance and due diligence requirements and obligations of the recipient and any counter party and/or their financial, legal and banking advisors and to contract/engagement between the relevant principals/parties. By reading this document the recipient of the information within this document accepts that it is supplied only by the introducer at the request of the recipient and only to persons who by doing so acknowledge that they are financially capable and qualified to review it as experienced investors. Where any party in receipt of this information whether directly or indirectly is contemplating its utilization for any financial or investment purpose then such party must be an accredited or sophisticated investor as generally recognized for these purposes and should seek such advice as may be appropriate. Where any transaction, procedures, structure, terms, yields or profits are suggested or prices or values are quoted they are subject to availability and to contract between principals. This notification shall remain in full force and effect in respect of this communication as well as any future communications between the parties, whether attached to or included in any such future communications or not. This is an outline of certain transactions, structures, opportunities, procedures and arrangements and the basis upon which they may be available and potentially carried out subject to the personal acceptance of the enquirer as potential investor, his funds or assets, to banking compliance and due diligence enquiries concerning the potential investor and his funds or assets and to contractual arrangements between principals.

The submission of any information or documentation by any party who owns or controls funds or assets and is potentially seeking involvement and for these purposes is regarded as a potential investor does not guarantee the availability of any structure, the availability of a structure for the potential investor or acceptance of the potential investor after enquiry. Interested parties who submit information and documentation for consideration in respect of an application for participation in a structure accept that by doing so they do so only on the basis that they have read, understood and accepted this notice and that they do so freely and that the parties to whom this information & documentation is submitted are not proposing or offering them anything and if anything is proposed or offered to them it will only be by contracting counter parties and that they have no obligation to

enter into any contract and if intending to do so they are required to carry out their own enquiries regarding the suitability of such parties and contractual arrangements and that any party acting as introducer to such arrangements has no responsibility or liability, direct, indirect or consequential, for the acts of the contracting parties or proposed contracting parties in any way.

 

 

 

Disclaimer: We are not a United States Securities Dealer, NFA/CFTC Member, or United States Investment Advisor. All articles and related documents are never considered to be a solicitation for any purpose, in any form or content. Upon reading the articles and information you hereby acknowledge this warning and Disclaimer. All information provided is for informational purposes only, and shall not be relied upon as personal financial advice. Any reference to a specific trading strategy is only to assist in learning, and shall NEVER be relied upon when making future investment decisions.


 

 


Private Placement Program ( PPP ) - Private Placement - Private Placement Funding - Private Equity Placement - Buy and Sell MTNs - Medium Term Notes - Bank Guarantee - Private Placement Programs Private Placement Platform - Investors Private Placement Companies - Private Placement Platform - Program Manager - PPP Trade - Private Placement Trader - Project Funding Agreement - Programas de alto rendimiento - haute performance des programmes - - - high-performance programs - ad alte prestazioni programmi - Placement Programma privati - Programmi di collocamento privato


 

 

 

 

 

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Private Placement Program ( /POF)

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5 000 000

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Bye & Sale    Private Placement Program

 

Euroclear

 2004