OUR
PROCEDURE

Step 1:  Upon Keston Bank Instrument Order Form acceptance (via Keston’s Authorized Representative), a Keston Account Manager sends to Borrower via official (@kestoncap.com) electronic mail its Deed of Agreement (DOA) to be electronically signed and returned to Keston official email;

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Step 2: Keston digitally countersigns and returns the DOA to the Borrower, which thereby automatically becomes a full commercial recourse contract;

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Step 3: Within 5 days, Borrower issues the Settlement Cost (based on tranche size beginning at $/€ 35,000) or RWA via SWIFT MT999 to the Provider to reserve the bank bond for the borrowing of the bank instrument (MTN/SBLC/BG);

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Step 4: Provider places a 20-day call option on the selected investment grade bank bond (collateral), for the face value amount of the MTN/SBLC/BG as ordered by the Borrower;

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Step 5: Within 3 banking days, Provider sends all details of the bond (verifiable via Euroclear, Bloomberg, and Refinitiv Eikon terminal) for Borrower to confirm the instrument in their name along with the Pro forma Invoice for its payment commitment;

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Step 6: Within 3 banking days, Borrower executes and returns the Pro forma Invoice for its payment commitment to Provider for the order / delivery of the MTN/SBLC/BG;

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Note: The call option maybe extended for an additional 30 days ($/€ 25,000) if Borrower cannot issue its conditional payment via SWIFT MT103 prior to call option expiration.

 

Step 7: Within 3 banking days, Borrower instructs its bank to send its payment commitment to the Provider’s assignor / bank under its assigned transaction code before expiry of call option;

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Step 8: After receipt of the payment commitment and successful due diligence, the bank bond will be placed at its portfolio bank for issuance of cash-backed MTN/SBLC/BG delivered by SWIFT MT760 to the Borrower's receiving bank;

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Step 9: After receipt and verification of the MTN/SBLC/BG by the Borrower’s bank, the payment commitment becomes due or matures as agreed;

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Note: The payment commitment is cancelable if the SBLC is not delivered to the Borrower’s receiving account via SWIFT MT760 within 21 days of hard copy receipt;

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Step 10: Fifteen (15) days before the maturity date of the bank instrument, Borrower’s bank returns back the MTN/SBLC/BG to the Provider’s issuing bank unencumbered and free of liens.