VENEZUELAN BOND MONETIZATION

 

Magister Operis™ has direct access to various financial instrument monetization sources.

In order for the monetization to occur, the instrument is blocked on behalf of a recourse or non-recourse lender typically for a year and a day.

The quality of a compliance package is the key issue and critical factor in achieving successful monetization at the highest LTV.

 

REQUIRED ITEMS FOR SUCCESS:

  1. Copy of the instrument(s) or a ready, willing, and able (RWA) commitment letter from the issuer.
  2. Copy of safe keeping receipt (The SKR) if instrument is in a safe keeping custodial situation.
  3. Copies of any other paperwork that supports the instrument’s authenticity, ownership, and/or value.
  4. Copies of any underwriting policies.
  5. Client Information Sheet (CIS) that includes client attorney info.
  6. Letter of Request (LOI) in client letterhead that includes non-solicitation language and description of the history of the asset.
  7. Corporate resolution (if applicable).
  8. Copy of banker’s business card.
  9. Copy of attorney/advocate's business card.
  10. Attestation Letter from client's attorney/advocate attesting that the attorney has verified the authenticity of the client, the authenticity of the asset with the central bank, as well as the client's relationship with client's bank.
  11. Euroclear pages (22 pages) if loaded on Euroclear
  12. Central bank documents:
    1. Custody Certificate (SKR)
    2. Affidavit
    3. Certificate of Ownership
    4. Authorization to Verify and Authenticate (ATV)
    5. Commitment Letter confirming custody and readiness to transfer and assign.
    6. Account Statement
  13. Letter in client's bank letterhead confirming authenticity and ownership of the bond.       
  14. A list of intermediaries involved in-between and what are the expectations of the intermediaries.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

 

PROJECT FUNDING:

Add the following documents If the client has projects to be funded:

  1. Business Plan
  2. Financial Pro forma
  3. Certified accounting for funds already spent

 

TIMELINE/ROADMAP
TASK DURATION ***
INFORMATION GATHERING
1) Gather Submission Data Depends on client and asset
2) Magister Operis due diligence on data 24-72 hours
3) Direct dialog with client to make sure the client is real and ready as well as client’s bank, legal representation, and/or underwriter are ready as required. 15 minutes to 1 hour
4) Intermediaries professionally package themselves for efficient payment. 24 hours
5) Magister Operis packages the data for submission to monetizer 0-4 hours
MONETIZATION
1) Client’s paperwork is submitted to monetizer. 15 minutes
2) Monetizer does due diligence on data 24-72 hours
3) Magister Operis introduces client to monetizer and arranges conference call 24 hours
4) Monetizer and client have a conversation to get on the same page with each other 15 minutes to 1 hour
5) Attorneys are introduced to each other to draft contracts 30 minutes
5) Monetization lawyer issues draft contract to client for review. 24-72 hours
6) Client signs monetization contract. 10 minutes
7)Client blocks asset as agreed on behalf of monetization bank. 1-72 hours
8) Monetization banker deposits monetization funds into client’s account as per contract. 30 minutes
9) Intermediaries paid as agreed. 15-60 minutes
  *** DURATIONS NOTE:  Please understand that the above time durations are simply educated guesses of what might be reasonable. Actual times will vary due to the quality or lack of quality as well as time constraints of the signatory principals, assets, intermediaries, documentation, legal counselors, custodial institutions, and/or banks. 

 

Due Diligence: CLICK HERE

Magister Operis Workflow: CLICK HERE

General LTV information: CLICK HERE

Broker notes: CLICK HERE

Disclaimer: CLICK HERE