Does any of you know of a lender who will accept a New IssueSBLC (to be issued to the benefit of the lending institution)?
I received a request from a friend who has a huge project in need of funding. One investor agreed to fund the project and offered a new issued SBLC which will be issued by the Central Bank of Brazil (Banco Central do Brasil) for the term of One year. My friend is looking for a "lender" willing to accept the SWIFT MT799 followed by a SWIFT MT760 allowing the lender to release funds directly to the project owner. The requested LTV must not be lower than 60% of the MT 760 FV. My friend is willing to pay 8% of the borrowed funds, with monthly payments for one year.
If any of you can be of assistance, please send me a message directly to this email: ANENRO.CUSTOMER.SERVICE@gmail.com
Please. Be direct to the lender or be the lender. No daisy chains. I will put the qualified lender or agent in direct communication with the project owner, who will instruct his investor on the issuance of the SBLC based on the agreed term sheet.
a couple of things since these things come up often: a. Brazil has a fraud problem with those instruments, any bank or lender will do an intense compliance check, especially on the backing of the instrument b. a lot of fraudsters pretend to be the Central Bank Once that is overcome c. the Central Bank of Brazil is normally not allowed to issue to a foreign bank, its not a commercial bank d. if the instrument is stripped off a commercial transaction undersigned by the bank, compliance issues will aise e. all in order the non-investment grade will be trouble. The Brazil 10Y Government Bond has a 6.793% yield. 10 Years vs 2 Years bond spread is 333.5 bp. Normal Convexity in Long-Term vs Short-Term Maturities. Central Bank Rate is 3.00% (last modification in May 2020).The Brazil credit rating is BB-, according to Standard & Poor's agency. Current 5-Years Credit Default Swap quotation is 203.70 and implied probability of default is 3.40%.
This means credit risk will probably need to be insured.
There are 5 lenders I know who can accept Brazilian Paper but all depends on amounts and handling. You have a hard road ahead of you.