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Post by ukipa on Jan 9, 2014 19:43:44 GMT 4
Top of the morning to one and all !
I have a question.
Is anyone aware if it is possible to monetize a safekeeping receipt, to be issued by the Central Bank of Venezuela, for gold being held in their vault, in the amount of $3B USD?
The SKR backed by the gold held in the vault of the BCV will be used to trigger a line of credit and the loan will be repaid in 24 months from the date the funds are released to our association.
Is this type of transaction possible?
Please comment.
Thank you.
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Post by Sapphire Capital on Jan 9, 2014 22:59:06 GMT 4
it is within reason, however knowing Venezuela I suspect they will be a troublesome client, always trying to circumvent, putting money in the pocket of the head man. In general all depends on the details and the safekeeping receipt. SO its doable, its even feasible, but......
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Post by discerningeye on Jan 10, 2014 7:05:42 GMT 4
now, when you speak of a loan or hypothecation, you have to offer the collateral to get a loan, and is a SKR a fungible collateral, and the crux of the issue as RL as put it: will BCV deliver this 'SKR' or a comparable collateral which is backed by this 'SKR', and are willing to risk their holdings?
Lending or securitization involves lot of factors and the first one is the risk assessment and compliance with Basel III, competent counterparty having the wherewithal to do business, and having the bank or other references to back them up.
If BCV does not play games, then it is feasible..... again, as RL has put it and without using plagiarism
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Post by ukipa on Jan 10, 2014 18:48:04 GMT 4
Thank you for taking the time to place your comments, in response to my question.
Granted, BCV personnel, including its board of directors, are extremely shifty and greedy. But, the top man has approached one of my sister divisions with this proposal. The SKR and SWIFT confirmation will be processed by BCV to the funding bank. However, my question is, which bank would embrace the risk involved and work with us? Maybe Deutsche Bank AG or HSBC HK? I guess I will know once I present the request. Please stay tune.
Cheers!
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Post by discerningeye on Jan 10, 2014 23:14:24 GMT 4
well, not unusual for BCV and their men who are making decisions to make some living for themselves - their appetite, bellies, necessities are getting bigger and the paycheck is too small to meet these needs, so they have to look for other ways. Everyone and their brother and in their seat is tempted to do so and allegedly does so, so per them they are not doing anything wrong. Look around in your backyard wherever you are and you will find greed for money, power, etc., and to sum it up in a word: mammon will be suffice to say, and that is why this world is all messed up the way it is.
To answer your question, TE, as which bank will open the door for BCV's collateral and which counterparty will directly accept the collateral in their account, respectively speaking, you don't have much choices as many banks have closed their doors to BCV, because of shenanigan attitude approach that BCV had taken in countless situation in the past, and the hostility between Venezuela and the nation you know of and real entities who have allegiance to this nation will not consider BCV collateral. But, on a positive and a promising note: the scenario that you propose is doable. When the specifics are available, let us know and we can re-convene via PM
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Post by ukipa on Jan 11, 2014 19:09:17 GMT 4
Thank you "discerningeye" for sharing your thoughts with me and the members of this great blog. I fully agree with all your comments. The facts speak for themselves and the barriers are there, for us to overcome. I will keep everyone informed of our progress as our senior partner is in Houston, vacationing and he wil be back in Venezuela tomorrow (Sunday) morning to proceed with this project.
Shabbat Shalom.
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Post by Sapphire Capital on Jan 12, 2014 0:07:45 GMT 4
no bank, structure it; for example design a private placement for debt securities (like notes) in the right terms and use the gld asset via an skr to the sinking fund trustee as collateral which at the same time is a credit enhancement, get a rating would make it faster but in general that usually does it, put at least a 12 month libor + 2 or even 3 on the interest rate, interest paid annually and principal at the end. can be done in denominations of 100M, use gld asset value minus 10% to avoid a hedge on the asset value. When done there are investors who buy, incoming funds from first can create enough leverage than to get a non-US player involved to replace the trustee if that is needed.
you reach me at legal@congregatio.net
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Post by ukipa on Jan 12, 2014 20:11:19 GMT 4
no bank, structure it; for example design a private placement for debt securities (like notes) in the right terms and use the gld asset via an skr to the sinking fund trustee as collateral which at the same time is a credit enhancement, get a rating would make it faster but in general that usually does it, put at least a 12 month libor + 2 or even 3 on the interest rate, interest paid annually and principal at the end. can be done in denominations of 100M, use gld asset value minus 10% to avoid a hedge on the asset value. When done there are investors who buy, incoming funds from first can create enough leverage than to get a non-US player involved to replace the trustee if that is needed. you reach me at legal@congregatio.net Thank you RL for your great suggestion. Question: Can this be done, when the asset is not ours, but allowed to be pledged as collateral, to obtain a loan? Once our associate partner lands in Caracas (on his way, as I type this comment), we will have the formal agreement with the involved party and I will send you details by private message (email). Once again, thank you for your support and I look forward to exchanging emails. Tony |
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Post by Sapphire Capital on Jan 12, 2014 23:03:59 GMT 4
Yes but you need a mandate like position, meaning a real power to represent and sole position in the contract, and since it is government you need the written ok from all the involved authorities, like Central Bank and probably in this case the president and treasury. Probably also a legal opinion from a leading lawfirm in the country saying that indeed you can use the collateral asset.
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Post by resistk on Jan 13, 2014 6:07:19 GMT 4
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Post by Sapphire Capital on Jan 13, 2014 7:23:32 GMT 4
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Post by discerningeye on Jan 13, 2014 17:15:42 GMT 4
as RL suggested, TE, you need to have all your ducks in a row with central bank (BCV) and at the senior most management especially the chief hancho and the treasury, ministry of finance, a very powerful lobbyist firm in Caracas, and at the government level, because, they are taking all the risk if they truly deliver on their word. And, that is why 99.99% BCV bonds transactions fail, because the so called beneficiaries are in a delusion that they can avail BCV's bonds or collateral for their own vested interest and/or for Caracas. It is a money maker scheme for BCV and their front men or firms.
You will have to cover the risk for BCV and also let BCV must know beforehand that they are working with a legitimate and a known entity and not another wanker. This is all done at the banks, central banks, and monetary authorities level including their project financing arms with references available from both sides to bring this business to fruition and not the way the wankers, shenanigans, et al conceive of
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Post by ukipa on Jan 13, 2014 21:52:10 GMT 4
Yes but you need a mandate like position, meaning a real power to represent and sole position in the contract, and since it is government you need the written ok from all the involved authorities, like Central Bank and probably in this case the president and treasury. Probably also a legal opinion from a leading lawfirm in the country saying that indeed you can use the collateral asset. 10-4 Thank you. |
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Post by ukipa on Jan 13, 2014 21:54:06 GMT 4
This option was scrapped. |
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Post by ukipa on Jan 13, 2014 21:57:55 GMT 4
as RL suggested, TE, you need to have all your ducks in a row with central bank (BCV) and at the senior most management especially the chief hancho and the treasury, ministry of finance, a very powerful lobbyist firm in Caracas, and at the government level, because, they are taking all the risk if they truly deliver on their word. And, that is why 99.99% BCV bonds transactions fail, because the so called beneficiaries are in a delusion that they can avail BCV's bonds or collateral for their own vested interest and/or for Caracas. It is a money maker scheme for BCV and their front men or firms. You will have to cover the risk for BCV and also let BCV must know beforehand that they are working with a legitimate and a known entity and not another wanker. This is all done at the banks, central banks, and monetary authorities level including their project financing arms with references available from both sides to bring this business to fruition and not the way the wankers, shenanigans, et al conceive of You are correct indeed. Our group, with the assistance of a Venezuelan well known law firm, are in communication and receiving support from Tovar & Maduro. Granted, it was not easy. But, we are making serious progress. I will keep RL updated. Best wishes to one and all. P.I. / UKIPA / Tony |
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