PROJECT FINANCING | TRADE FINANCING | PPP TRADE | SBLC | MTN | MONETIZING
1) Instrument Owner(s) through its authorized representative shall come on board as co-owner with limited rights in the Securitization Vehicle at Luxembourg owned and operated by our Trading Desk.
2) Instrument Owner would allow the Trading Desk to collateralize the asset-backed financial instrument(s) and thereupon issue asset backed securities. Goldman Sachs and PIMCO Global would underwrite these securities for institutional investors like Sovereign Wealth Funds, Hedge Funds, Credit Institutions and other financial institutions.
3) Funds raised through these asset-backed securities would then be used for trading and investment across global capital markets.
4) Returns generated shall be paid out to institutional investors, Instrument Owner and owners of the Trading Desk.
STANDARD PROCEDURE FOR COMMENCEMENT OF THE PROGRAM
5) Instrument Owner must pass a board resolution to express their intent to invest with the Trading Desk, and participate in this structured investment program. They must authorize one Director who would represent the Instrument Owner(s) for all purposes related with this program.
6) An LOI shall be presented by the Instrument Owner(s) to the Trading Desk (format shall be provided by the Trading Desk)
7) Upon receipt of the copies of the Board Resolution and Authorization Letter along with LOI, KYC documents of the said authorized Director and KYC documents of Instrument Owner(s), official Private Placement Memorandum (PPM) and Luxembourg Securitization Vehicle Co-Ownership Agreement (SVCA) would be issued.
8) Once these preliminary formalities are complete, KPMG on behalf of the Trading Desk and Instrument Owner would complete procedures to have Instrument Owner onboarded as co-owner of the Securitization Vehicle with limited rights and also carry out the formal collateralization procedures in accordance with HSBC, Luxembourg.
9) The Instrument Owner(s) must provide total and unconditional consent and rights to HSBC and the Trading Desk to use the financial instrument(s) as collateral to further issue asset-backed securities.
10) Asset-backed securities would be underwritten by Goldman Sachs and PIMCO Global and funds raised through subscription of these securities shall be deployed through Goldman Sachs and PIMCO Global in financial markets.
11) There is a minimum lock-in period of 03 years and can be extended up to 05 years.
12) All investment returns are subject to market risks. However, through careful mathematical design of the investment strategies and deployment of technology infrastructure provided by IBM, AWS, EOS (satellite data) and Bloomberg, it has been possible to create hybrid securities having combination of various traditional and esoteric asset classes and their derivatives such that predictable returns are generated with inherent tail risk hedging.
13) Instrument Owner(s) can expect notional returns in the range of 35%-45% annually. Liquidity criteria would be provided by Goldman Sachs and PIMCO Global in accordance with the risk management framework prescribed by the Trading Desk.
COSTS INVOLVED IN COMMENCEMENT OF THE PROGRAM
14) Multi Compartment Securitization Vehicle formation costs would be borne by the Trade Desk
15) CSSF Luxembourg co-ownership charges for securitization vehicle to be paid by Instrument Owner(s) on behalf of the appointed representative
16) All charges relating to compliance, due diligence and regulatory charges are to be borne by the Trade Desk.
Maximuch works with the top rated banks, asset management companies and other Financial Institutions all over the world and does not tolerate money laundering and supports the fight against money launderers. In particular, we follow the guidelines outlined in the US “Patriot’s Act” and by US regulators.
MAXIMUCH has KYC policies in place in order to deter people from laundering money. We are obliged to conduct a comprehensive KYC "Due-diligence to comply with international banking rules, AML Policy and with the rules established by our various principals and the domestic laws of their countries.
These policies include:
· Ensuring clients have valid proof of identification
· Complete and valid KYC documents
· Maintaining records of identification information
· Determining clients are not known or suspected criminals or terrorists by checking their names against lists of known or suspected criminals/terrorists
· Informing clients that the information they provide may be used to verify their identity
· Closely following clients’ money transactions
· Not accepting cash, money orders, third party transactions, exchange houses transfers or Western Union transfers.
We are obliged to conduct a comprehensive KYC "Know Your Client" investigation to comply with international banking rules, money laundering conventions and with the rules established by our various principles and the domestic laws of their country.
Sovereign bonds, also known as government bonds or simply treasuries, are debt securities issued by a national government. These bonds are a way for governments to borrow money from investors to finance various public expenditures, such as infrastructure projects, social programs, and budget deficits. Here's how sovereign bonds work:
1. Issuance: When a government needs to raise funds, it issues bonds through a formal process. This involves specifying the terms of the bonds, including the interest rate (coupon rate), the maturity date, and the face value of the bonds.
2. Auction: In many cases, governments use an auction system to sell their bonds. Investors, including individuals, institutions, and other governments, bid on the bonds. The highest bidders receive the bonds, and the interest rate is often determined by the auction process.
3. Interest Payments: Sovereign bonds pay periodic interest to bondholders, usually semiannually or annually. The interest rate is fixed at the time of issuance and is based on market conditions and the creditworthiness of the government. The interest paid is known as the coupon payment.
4. Maturity: Sovereign bonds have a specified maturity date, which is the date when the principal amount (face value) is repaid to bondholders. Maturities can range from a few months to several decades.
5. Face Value: The face value of the bond is the amount that will be repaid to the bondholder at maturity. It is also the amount on which interest payments are calculated.
6. Secondary Market: After the initial issuance, sovereign bonds can be bought and sold on the secondary market. Investors can trade these bonds with each other, and the prices of bonds fluctuate based on changes in interest rates, economic conditions, and the perceived creditworthiness of the issuing government.
7. Credit Risk: The risk associated with sovereign bonds is often referred to as credit risk or default risk. This is the risk that the government may be unable or unwilling to meet its debt obligations. Credit rating agencies assess and assign credit ratings to governments, providing investors with an indication of the risk associated with holding their bonds.
8. Yield: The yield on a sovereign bond is the effective interest rate an investor receives, taking into account the bond's current market price. As bond prices and yields move inversely, changes in market conditions can impact the yield on existing bonds.
Yield in the context of bonds refers to the return on investment that an investor can expect to receive from holding a particular bond. It is a crucial measure for bond investors as it provides insights into the profitability and risk associated with holding a specific bond. There are different types of yields, and each provides a different perspective on the potential return:
Coupon Yield or Nominal Yield:
Yield to Maturity (YTM):
Yield to Call (YTC):
Yield to Worst (YTW):
Sovereign bonds are considered relatively low-risk investments, especially when issued by economically stable countries with strong credit ratings. However, they are not entirely risk-free, and investors should carefully consider factors such as interest rate movements, inflation, and geopolitical events when investing in these securities.
Monetizing Sovereign Bonds - MAXIMUCH