Mid Term Note (MTN) Monetization

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Mid Term Note (MTN) Monetization

INSTRUMENT & SERVICE DESCRIPTION:

Complete Recourse Loan & Non-Recourse Loan Monetization of Mid Term Note (MTN) for the intention of Project Funding.

Our clients are never requested to deposit money for monetization with The Hanson Group “upfront” – we are compensated on the “back end” of the transaction, which means we are paid on “performance”, which is tied directly to the Agreement between Hanson Group and our client.

We monetize your instruments, by giving you a Loan, that our group is capable to negotiate, through a properly established Facility Provider, a loan that in most cases, you do not need to pay back, or even if you do, it will have a very low interest rate. We arrange for the loans to be issued to one of the Foundations we work with and manage, a Foundation which in turn, gives a loan to the instrument’s owner. It is very straight forward and simple.

We offer 4 Monetization settlement methods:

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1. Euroclear – Euroclear settlement process is fast, transparent and uses the Free Euroclear Delivery process so Clients DO NOT incur any SWIFTING FEES or Delays. Euroclear is a well established European financial transaction settlement network that was founded in 1968 by JP Morgan and continues to operate successfully employing over 3500 people today.

 

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2. Bank SWIFT – Mid Term Note (MTN) delivered Bank to Bank using SWIFT MT799 followed by SWIFT MT760.

 

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3. DTCC – We accept delivery of the Mid Term Note (MTN) by DTC also known as DTCC (The Depository Trust & Clearing Corporation). The advantage of DTC is that clients using this process to deliver a Mid Term Note (MTN) DO NOT incur bank SWIFTING FEES. DTC is a well established International business that was founded in 1999 and in 2015 was recorded as settling 1.5 Quadrillion Worldwide making its the highest value securities settlement processor in the world.

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4. Bloomberg – The Bloomberg process is extremely fast and there is no SWIFT fees. Bloomberg was founded in 1981 and is one of the most established financial transaction networks in the world.

Hanson Group Monetization services are ideal for clients looking to Discount, Monetize, or create an immediate Non Recourse loan against a Mid Term Note (MTN) that they own. The Monetization process for Mid Term Note (MTN) issues Non Recourse funds to the Client shortly after the Mid Term Note (MTN) is delivered to the Monetizer.

Important: Our contracts also include the monetizer returning the Mid Term Note (MTN) to the original owner or Issuing bank 15 days prior to the Mid Term Note (MTN) expiration or after 1 calendar year (whichever the client prefers). We can also complete the Mid Term Note (MTN) transaction using Screen, Block and Pay on the Euroclear or SWIFT Networks if requested by the client.

Monetization LTV for a Non-Recourse Loan:

  • Loan to Value (LTV) for a Mid Term Note (MTN) of 5 to 500M – 65% Non-Recourse Loan with a Rated Bank instrument or 45% Non-Recourse Loan with a Non-Rated Bank instrument.

Monetization LTV for a Recourse Loan:

  • 5 to 500M Mid Term Note (MTN) – 65% Recourse Loan with a Non Rated Bank instrument or 80% Recourse Loan with a Rated Bank instrument – This loan has an interest between 2% to 7.5% per annum and can span up to ten years in length.

Note: 5 % commission is paid on Non Recourse and Recourse Loans.

Estimated Completion Time:

  • 7 to 14 Days after all documents are signed and verified or 5 to 7 Days After Instrument Delivery on the SWIFT, Euroclear or DTCC Networks.

Loan Disbursement:

  1. 21 days after confirmation and authentication of the MT-760, we release first disbursement (20% of the loan).
  2. 30 days after the first disbursement we release the second disbursement (20% of the loan).
  3. The remaining 60% of the loan will be divided in ten (10) month and will be disbursed every 30 days after the second  disbursement.

Notes:

  • Full loan disbursement in 12 month.

 

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Closing Process – SWIFT

  1. After execution of the monetization contract by both parties the Client will instruct his bank to send SWIFT MT799 to the bank coordinates provided by the Monetizer.
  2. The Monetizer’s bank, after receiving the SWIFT MT799 from the client’s bank, will reply with a SWIFT MT799 RWA to received.
  3. On receipt of the Monetizers bank SWIFT MT799 the Clients bank will deliver the Mid Term Note (MTN) by SWIFT MT760 to the Monetizers bank.
  4. Upon receipt, confirmation and delivery of the SWIFT MT760 the Monetizer will within maximum seven (7) banking days grant a Non Recourse Loan for the LTV as agreed from its nominated bank to the Client.
  5. The Monetizer agrees to return the Mid Term Note (MTN) unencumbered fifteen (15) calendar days before the 1 year anniversary of the signed contract between the parties.

Closing Process – Euroclear & Bloomberg:

  1. After execution of the monetization contract by both parties the Client will instruct his bank to assign the Mid Term Note (MTN) using FREE Euroclear Delivery to the bank coordinates provided by the Monetizer.
  2. The Clients Banker shall immediately email a certified Euroclear execution receipt of the Mid Term Note (MTN) delivery to the Monetizer.
  3. Upon receipt and confirmation of the Euroclear assignment and delivery, the Monetizer will within maximum seven (7) banking days grant a Non Recourse Loan for the LTV as agreed from its nominated bank to the Client.
  4. The Monetizer agrees to return the Mid Term Note (MTN) unencumbered fifteen (15) calendar days before the 1 year anniversary of the signed contract between the parties.

Required Documents:

  1. Download the Bank Instrument Monetization Application Below
  2. Complete all pages of the Bank Instrument Monetization Application and email it to: helpdesk@thehansongroupofcompanies.com

Compliance Standard:

  1. Accepted Standard: The bank Instrument MUST be from a Rated Bank and Delivered by SWIFT, Euroclear, Bloomberg or DTCC.
  2. Rejected Standard: Any Bank Instrument from our Forbidden Assets and Financial Instrument Providers List.

Recourse Loan Disbursements Example (100 Million Euros):

Bank instrument face value: $100,000,000.00
Recourse Loan disbursement (80%): $80,000,000.00
Loan commission fees (5%): $4,000,000.00

Total Loan Disbursement: $76,000,000.00

Example of Recourse Loan Disbursement Schedule:

Recourse Loan Disbursements Amount in Euros Date of Disbursements
Loan 1st Disbursement: €15,200,000.00 20% of the loan in 21 days after received and authentication of the MT760.
Loan 2nd Disbursement: €15,200,000.00 20% of the loan 30 days after the 1st disbursement.
Loan 3rd Disbursement: €4,560,000.00 30 days after the 2nd disbursement.
Loan 4th Disbursement: €4,560,000.00 30 days after the 3rd disbursement.
Loan 5th Disbursement: €4,560,000.00 30 days after the 4th disbursement.
Loan 6th Disbursement: €4,560,000.00 30 days after the 5th disbursement.
Loan 7th Disbursement: €4,560,000.00 30 days after the 6th disbursement.
Loan 8th Disbursement: €4,560,000.00 30 days after the 7th disbursement.
Loan 9th Disbursement: €4,560,000.00 30 days after the 8th disbursement.
Loan 10th Disbursement: €4,560,000.00 30 days after the 9th disbursement.
Loan 11th Disbursement: €4,560,000.00 30 days after the 10th disbursement.
Loan 12th Disbursement: €4,560,000.00 30 days after the 11th disbursement.
Download the Owned Mid Term Note (MTN) Monetization Application Here!
Download the Recourse Loan Agreement Here!