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Swf Example - Bg Term Sheet First Time Buyer 28oct2013-1 | Securities (Finance) | Payments

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  T ERM  S HEET  P ROPOSAL  S UMMARY A CQUISITION   OF  B ANK  G UARANTEES  (BG) OR  SBLC ISSUED   BY  HSBC-L ONDON , S TANDARD  C HARTERED  B ANK -L ONDON   OR  UBS AG - Z URICH NOTE: This Term Sheet is for a first time BG buyer that must pay the bank’s advance commitment fee with traditional SWIFT delivery. The following summarizes an opportunity for a qualified Investor (“Buyer”) to purchase Bank uarantees (B or Bs) from quality !uropean issuing anks# The ank guarantees appreciate to $%%& of face value on the maturity date (less than $'months)# Bs can e ordered with or without interest payments due on the maturity date# eller provides the interest payment separately# The Bs are ank issued securities with II* and +,I- registration num er to facilitate su sequent uysell private placements# ,nlike other securities (.T*s)/ Bs are $%%& cash acked with funds on deposit at the issuing ank# eller/ a humanitarian organization/ has e0clusive arrangements with top anks to provide Bs elow market costs and share this advantage with the Buyer# *ote1 This term sheet is intended solely as a asis for further discussions/ is not intended to e/ and does not constitute a legally inding o ligation or agreement# In addition/ the e0amples/ num ers and calculations/ elow/ are intended to clarify the offering and the terms# OFFERINGTERM SUMMARY $# BG Dominations (Face Value): a).inimum B 2ace 3alue1 !  .illion ).a0imum ingle B 2ace 3alue1 ! Billion c)Total B orders accepted per week1 #  Billion per issuing ank#'# Issue Date an$ Matu%it& Date: a)The issue date when delivered to the Buyer is normally within $ to ' ank days of when funds were confirmed in escrow# )4ll Bs mature within $ year and $ day ($'months and $ day) from date issued y the ank#5# Re$eemin' BG at Issuin' Ban a)2ull 2ace 3alue at .aturity 6ate # The B has a full 2ace 3alue at the issue date (inception) ut can only e redeemed at the .aturity 6ate at $%%& full face value# )7edemption # Buyer (owner) must redeem the B for cash/ at the maturity date/ ut no later than the e0piration date shown on the B documents (typically $8 ank days from maturity date)#c)!0tensions # Buyer can e0tend the B maturity date for 9 times of $ year and $ day with advance notice to the issuing ank# eller will pay for all e0tensions ( ank fees)# +urrently/ a si0 percent (:&) interest coupon is given on all e0tensions# *ote1 *o interest on first year of B issue#!;4.-<!  B Term heet 2irst Time Buyer '=>+T'%$5$ / Page $  of :  ?+onfidential and 6o *ot 6istri ute  OFFERINGTERM SUMMARY d)!arly 7edemption (*egotiations) # The Buyer (owner) may request an early redemption prior to the $year and $day from issuing ank# Issuing ank will propose an early claim redemption value to Buyer (not full 2ace 3alue)# 9# BG a%e Secu%e$ Ban Inst%uments a)$%%& cash acked with funds on deposit at issuing ank# )Bs have II*/ +,I- and other ank registration num ers as marketa le security ank instruments#c)Bs can e transacted and delivered directly y @I2T .TA:% and +ourier ardcopy/ on y secure online connection on !uroclear/ I#+##6# 6T++ and Inter ank ystem#8# u%%enc&: a)C  !uro (preferred) )D  B-c)E  ,6d)+ F wiss .arc:# BG Inte%est *a&ment: The anks issue Bs with “no interest payment at maturity” (Gero +oupon/ %&)# A# T&+e o, T%ansaction: a)-rivate placement etween two (') qualified parties (Buyer and eller)# )Buyer acknowledges they are qualified to participate in private placements as an accredited and qualified investor (a ,4 standard)# =# BG *%ice - Fi%st Time Bu&e%:./0  (2ortyeight percent) of face value of B ($%%.H)!0ample1 $%% .illion B 0 9=& equals  9= .illion cost of B !10  (2iftynine percent) of face value of B ('8.JJ.)J# T%ansaction Ste+s - Fi%st Time Bu&e% 2it3 S4IFT Deli5e%&: -lease see attached !0hi it A / @I2T -rocess*ote K$1 The procedures outlined in this term sheet must e adhered to and no modifications can e permitted# 2or e0ample/ final delivery of the B is accomplished after final payment is received# B cannot e delivered without prior payment# $%# Bu&e% Fun$s to Bu& t3e BGs: a)Issuing Banks prefer the funds to purchase the Bs are on deposit in a known @orld Bank# )Issuing Banks will confirm the funds are on deposit in an escrow account efore issuing any Bs# $$# Fi%st Time Bu&e% 5e%sus Re+eat Bu&e%  -lease see attached !0hi it B / 2irst Time Buyer and 7epeat Buyer ummary# ontact In,o%mation:  E67IBIT ABG BUY E6AM*8E - S4IFT VERIFIATION AND DE8IVERY TRANSATION *ROEDURES $#Buyer su mits compliance package with full anking coordinates (there must e sufficient cash funds in this account)/ !nlarged $9%& +olor copy of -assport/ +lient Information heet/ +ertificate of Incorporation (if applica le)/ +orporate 7esolution (if applica le)/ *onolicitation tatement/ and an Irrevoca le 2ee -rotection 4greement# '#The eller confirms that Buyer has sufficient funds in their ank account to conclude the B purchase transaction (LpingM)# 5#4fter conducting due diligence and within 9= anking hours after receive the BuyerNs client information documentation (+I or OP+)/ the eller will release the Bank uarantee (B) -urchase 4greement to Buyer# 9#@ithin one ($) ank day/ the Buyer will acknowledge/ agree and send the signed B -urchase 4greement to eller y email# 8#@ithin one ($) ank day of receipt of BuyerMs signed -urchase 4greement/ eller will sent to uyer the >rder +onfirmation and Invoice document# :#,pon receipt of the BuyerMs signed >rder +onfirmation document and payment of the ankMs commitment fee (2irst Time Buyer only) to the escrow account (agent)/ eller will place order for the B with issuing ank# A#@ithin two (') anking days/ the ellerMs Bank shall send a -7!463I+! @I2T .TAJJ to the BuyerMs Bank# The -7!463I+! will contain the BMs specific information for the Buyer to verify and confirm the B# eller will also send y email screen shots of the B to Buyer# =#@ithin one ($) anking day/ the Buyer will confirm/ approve and accept the B# The Buyer will send to ellerMs ank a return .TAJJ authorizing delivery of the B y .TA:%# J#@ithin one ($) anking day/ the eller will instruct issuing ank to deliver the B to BuyerMs ank y .TA:% 6elivery .essage# $%#,pon receipt of the .TA:% 6elivery .essage (the day the message is received y BuyerMs ank)/ the Buyer has two (') ank days to send final payment y .T$%5 to ellerMs escrow agent# !;4.-<!  B Term heet 2irst Time Buyer '=>+T'%$5$ / Page 5  of :  ?+onfidential and 6o *ot 6istri ute  $$#,pon receipt of the final payment at escrow agent account/ within seven (A) days/ the issuing ank will send hard copy B documents to BuyerMs ank y courier# $'#If escrow agent does not receive the final payment within the two (') ank days/ the issuing ank will void the B# eller will close the transaction and pursue the one percent ($&) default payment# $5#4ny unauthorized calls y any party or its representative lawyers to pro e or communicate in an improper way to ank(s) in this transaction shall e prohi ited and contract terminated#
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