FRESH-CUT PRICE: 45+2=47%
LEASE PRICE: 12+2=14%
INSTRUMENT DESCRIPTION:
Instrument Type: Bank Guarantee (BG) - CASH BACKED- Format ICC 758
Term : One (1) year and one (1) day
Age : Fresh Cut
Issuing Bank : Deutsche Bank AG, FRANKFURT, GERMANY
Interest Rate: Zero percent (0%)
Fresh-Cut Price: Forty-Percent (40%) plus Two Percent (2%)
Lease Price: Twelve (12%) plus Two Percent (2%)
Intermediary Fees Two (2%) Percent of face value. One (1%) Percent for Sell Side and
One (1%) for Buy Side.
Currency: EURO
Minimum Contract: Five Hundred Millions (500,000,000) plus Rolls &Extensions
First Tranche: 100 OR 200 OR 300 OR 400 OR 500 Million or AS AGREED
Denominations: 100 OR 200 OR 300 OR 400 OR 500 Million or AS AGREED
Delivery: Pre-Advice SWIFT via MT799, MT-760 to Buyer’s bank with
Hard Copy to follow by bank bonded courier within five (5) banking days after authentication of payment.
Payment: By unconditional SWIFT Wire Transfer – MT-103.
TRANSACTION PROCEDURE:
1. Buyer sends letter of intent (LOI), Client Information Sheet (CIS), Enlarged (140%) colour copy of passport, Certificate of Incorporation, Company’s resolution, Non-Solicitation, NCND, Tranche Schedule, IFPA, Buyer Bank Capability Letter via Swift MT-799, Seller Pre-Advice Swift MT-799, Buyer ICBPO Swift MT-799, Seller Swift MT-760.
2. Seller sends email to Buyer cc Seller’s Mandate with following message “This is to officially confirm from you of your awareness, willingness, readiness and your signatory of the attached file and to follow the procedure as stated in the attached files and your confirmation of your Bank advising our Bank via swift MT799 your POF. This is part of our DD in your files. Will be waiting for your confirmation in order to countersign your file”
3. Upon receipt of Buyer’s confirmation via email to Seller and cc Seller’s mandate, Seller will countersign the LOI and return to Buyer with Details of Issuing bank, passport copy, Certificate of Incorporation and Seller’s Corporate Resolutions. This LOI automatically becomes a full commercial recourse contract. Both parties shall lodge the signed contract with their respective banks.
4. Within 2 Banking Days, Buyer’s Bank sends Swift MT-799 BANK CAPABILITY LETTER (BCL) to Seller’s Bank and provides a courtesy copy by email.
5. Within 2 Banking Days after authentication of BCL, Seller’s bank sends Swift MT-799 Pre-advice to Buyer’s bank. (Pre- advice shall be valid for (4) four banking days only) and provides a courtesy copy by email.
6. Within 2 Banking Days after authentication of Pre-Advice, Buyer’s bank sends PAYMENT UNDERTAKING Swift MT-799 of 45+2% face value to Seller’s bank and provides courtesy copy by email.
7. Within 2 Banking Days after authentication of PAYMENT UNDERTAKING, Seller’s Bank sends Swift MT-760 to buyer’s bank and provides courtesy copy by email.
8. Within 5 Banking days upon successful authentication of Swift MT-760, the Buyer’s Bank will release payment of the 45% to the Seller’s Bank and 2% to sell and buy side intermediaries as per IFPA via Swift MT-103 Fed Wire Cash Transfer.
(If Buyer defaults to pay the fees to the Seller and the Intermediaries, as agreed on this contract within allowed number of days on authentication of Swift MT-760, Seller shall instruct the issuing bank to put a claim on the Instrument thereby forcing the Buyer's bank to return the Instrument swift MT-760 to the issuing Bank.)
9. Within 5 banking days after receiving the funds, the Seller’s bank will deliver the hard copy of the Instrument to the Buyer’s Bank by bank-bonded courier.
10 Any unauthorized calls by any party or its representative lawyers to probe or communicate in an improper way to bank(s) in this transaction shall be prohibited and the contract will be terminated.
11. This Letter of Intent is a full recourse commercial commitment governed by the Laws of the jurisdiction that both parties reside and standards under ICC Regulations.
DIRECT CONTACT:
Mr. Abdul Olamidapo
Telephone: +971-50-341-8099