Optimization of an Existing Asset as an Investment Lever via a Bank-Issued Financial Instrument (SBLC or BG)

1. Approach Philosophy

Our method is based on the strategic collateralization of an existing eligible asset, within a framework of structured investment optimization, not a traditional banking credit facility.
The purpose is to activate the economic value of an asset without creating debt, without capital repayment, and without transferring liquidity at the time of issuance.

2. Role of the Financial Instrument

• The client’s asset (land, secured deposit, or other eligible asset) is pledged as a guarantee to a partner issuing bank,

• The bank issues an international financial instrument in the form of:

  • SBLC (Standby Letter of Credit) or

  • BG (Bank Guarantee),

• The instrument is not a payment method, but strictly a financial collateral instrument,

• It is then integrated into a structured international investment mechanism, allowing an institutional investor to engage capital on the basis of its recognized financial value.

📌 Minimum instrument value accepted:

The minimum face value of the financial instrument (SBLC or BG) eligible for this operation is 5 million EUR or 5 million USD.
Any request below this threshold cannot be considered within this structured investment framework.

3. Transaction Nature – No Debt or Capital Repayment

Unlike a traditional banking financing structure:

• No conventional bank debt is created,

• No loan or credit facility is contracted,

• No capital repayment is required by the issuing bank,

• The client remains the full legal owner of the asset and the issued instrument,

• The yield paid is a contractual Return on Investment (ROI) linked to the issuance and financial use of the instrument as investment collateral,

• No funds are transferred or disbursed at issuance,

• The ROI is final, contractually acquired, and non-refundable, as it is generated from an investment mechanism, not a lending agreement.

4. Execution Framework and Financial Partners

The operation is executed:

• By recognized and compliant issuing banks,

• Through a bank-to-bank SWIFT process (MT760 or equivalent, depending on the issuing bank’s procedures),

• And with regulated institutional investment partners operating in Europe, including:

  • France, Belgium, Switzerland, Luxembourg, or equivalent licensed financial institutions.

📌 This ensures the transaction is conducted in a legally secure, institutionally compliant, and regulatory-approved European investment environment.

5. Economic Advantage and Yield Conditions

This mechanism enables:

• Conversion of an idle asset into an active financial investment lever,

• Access to institutional investment capital without selling the underlying asset,

• Generation of a contractual ROI independent of banking interest rates,

• A potential yield typically ranging between 10% and 40%, determined case-by-case, based on:

  • the rating and financial standing of the issuing bank,

  • the liquidity and financial quality of the instrument,

  • the instrument amount,

  • and the risk and compliance criteria of the investment partner.

📌 Important:
The yield is never promised or validated prior to file review, and is strictly subject to final contractual structuring approved by all parties.

6. “No Draw / No Claim” Clause – Automatic Expiration

For this type of operation, the financial instrument must comply with the following mandatory clause:

• The instrument remains valid until its natural maturity date,

• It must be left to automatically expire (auto-lapse), without tacit or automatic renewal,
  unless a written agreement signed by all parties explicitly states otherwise,

• No specific action is required for closure, as the instrument terminates automatically at maturity,

• No draw-down, claim, payment demand, presentation for payment, disbursement request, or fund mobilization can be made against the instrument during its validity period,

• No payment instruction, transfer request, or draw notice shall be issued, directly or indirectly, against the SBLC or BG,

• Therefore, no funds can be requested, debited, held, frozen, transferred, or called under this instrument.

Contractual Protection

It is also agreed that:

• Any attempt to call or draw funds will constitute a contractual breach,
  automatically triggering legal remedies, penalties, and protective measures defined in the DOA / Main Agreement,

• No funds may be mobilized outside of a prior written agreement signed by the parties.

📌 This clause must be inserted verbatim into the DOA (Deed of Agreement) or the Main Contract, ensuring it is irrevocable, enforceable, and legally opposable.

7. Client Safeguards

• The client remains 100% legal owner of the asset and the issued instrument,

• The instrument is strictly investment collateral, not a financing debt product,

• The transaction is conducted in a regulated European investment framework, via SWIFT bank-to-bank, with institutionally compliant investors,

• No conventional debt is created, and no capital repayment is required by the bank.