The Standby Letter of Credit (SBLC) 100% Funding Program is a systematic process designed to fully finance 100% of the participating project. For larger projects (budgets in excess of $25M) our Lender’s funding option has very specific requirements of the prospective borrower’s bank. Using this program our Lender (or one of their affiliate companies) would issue a Standby Letter of Credit (SBLC) from one of their tier 1 banking partners (HSBC UK or Barclays UK) that is fully cash backed, to the borrower’s bank. That bank MUST HAVE the full capability to monetize that bank instrument.
Under this example you (the borrower) would need to have a relationship with a bank, either yourself or through a family office or hedge fund, capable of receiving and monetizing a SBLC from Our Lender. This bank would receive and monetize the cash-backed SBLC, which would need to be of sufficient size to be able to yield a post-cost value of at least 2X the size of the project.
The primary benefit to your project is the ability to be funded IN FULL without bringing any money or additional investors of your own to the project. It simply requires a relationship with a banker who is experienced in the world of trading/purchasing bank instruments with the sophistication to understand and complete the transaction. That bank MUST HAVE the full capability to monetize that bank instrument. There are two possible options with this program, which the bank (or their hedge fund/family office client) would then offer our Lender. Follow the link to find out.
TMI Initial Requirements and Expectations
- Global projects can be submitted.
- Must have relationship with financial institution (bank/hedge fund/family office client, etc.)
- Project Outline/Budget Top Sheet/Draw Schedule
- Minimum initial project amount is $25M USD – no maximum.
- The project is then funded per a monthly draw down schedule that is agreed to by both parties (Our Lender’s insurer) as part of the Loan Contract.
- Projects are completed as per the schedule, and the client may execute any of 4 Repayment options, at their sole discretion.