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Capital Sum Limits: |
25 million - 200
million, Euros or USD. Larger amount may be available in exceptional
circumstances. |
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Term: |
1 - 3 years.
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Issuing Banks: |
Major international banks with
investment grade ratings. Several banks are used. |
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Arrangement Fee: |
1 year:
10% - 16% of the face amount.
3 years: 16% - 21%.of the face amount.
Both are dependent upon
the use, the face amount and the beneficiaries' credit profile.
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Delivery: |
By S.W.I.F.T., format to be
agreed - normally MT760. |
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Payment: |
For face amounts of
$50 million and below, the full amount of the arrangement fee must
be shown to be freely available and callable prior to the issue of
the instrument. Payment is usually via an escrow arrangement or
through a UK law firm under your instruction giving a payment
undertaking on the day of issue.
For face amounts over $50
million the issuer may accept an instalment fee arrangement with at
least 7% paid on the day of issue.
Payment must be completed within 3 calendar months for 1 year
instruments and 6 calendar months for 3 year instruments.
Payment wholly
dependent upon the successful outcome of the use of the instrument
is never an acceptable proposition.
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Introducer Fees: |
To be added to the
Arrangement Fee (not exceeding 1%). |
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Applications: |
In the first
instance please provide us by
email with details of the amount and term
required and the use to which it is to be put. If to be used
as collateral for a loan then your confirmation that the lender is
aware of and agreeable to the proposed arrangement is required. Please also
provide the identity and location of your receiving bank.
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Security |
Protections will be in place to prevent fraudulent misuse of the
guarantee. |
