Private Placement Program

Loans

INTRODUCTION

The following detail is for reference purposes only, and not to be relied on for any decision

Reference is made to the Program Manager / Trader as PM

OVERVIEW

Our PM will only respond to fully compliant Expressions of Interest (i.e. CIS, Passport, Proof of Funds). The EOI needs to include some evidence that prospective participants have ‘ready access’ to the currency equivalent, and that these funds actually exist.

Before extending an invitation to meet and participate, our PM needs to have some evidence that we have an RWA client. ‘Evidence of Funds’ can be by way of a recent bank statement, tear sheet or a letter of confirmation from a bank.

The main requirement from our PM’s point of view is that the entity is PPP and investment savvy, is of good character and well intentioned. Whilst not mandatory, it would not hurt if they had some beneficial objective for funds surplus to their immediate needs.

Upon receipt of a compliant EOI package (i.e. CIS, Passport, Proof of Funds) our PM will make direct contact with the interested party within 3-4 days and it is at that point when the parties can discuss a convenient time and place for a face-to-face meeting. The invited party is welcome to bring along any number of professional advisors. The invited party is also free to meet, free from any suggestion of any form of commitment and to take as long as they like to conduct their DD and to decide, or to walk away at any time if they wish.

In addition to cash deposits, the following may be acceptable securities:


A further indicative program description is as follows:

The program can be described as being the sale and purchase of medium term notes. The sale and purchase are carried out simultaneously. There is a margin between the sale and purchase referred to as the profit margin.

Profit margins can vary from the range of investments. The contract will specify the returns and how they will be distributed.

Profits are distributed as specified in the contract and fee agreement. These include the trading bank, trader / mandate, and intermediaries.

The trader operates from a trading house and has access to both buyers and sellers.

His job is to bring the buyers and sellers together, and in the process make a profit margin to distribute to the investor. He should make numerous transactions (trades) during the trading session.

An indicative example of a buy / sell order is where an institution needs to borrow, as follows:

This could be a bank which requires funds to operate. He possibly would require a large funding and will be happy to accept a discount on the funds required. The reason for that is banks can usually lend out a number of times the amount held (up to five times and more in cases). This comment is purely an indication - not a fact.

In the above example, the bank is now in a position to be profitable with the use of the borrowed funds.

The following can be regarded as an indicative procedure in the steps of a trade:

The trader carries out other trades during the session.

The above overview is designed to give the reader an indication of how such a PPP operates and in no way is it to be used by the reader or to be influenced by the contents.


Further reading to assist potential imvestors

Following is a brief resume on the procedures involved in a client applying for and being accepted into a trading position with a bank allied registered trader.

Our understanding is that these trades are specifically carried out to assist in major community based projects assisting lesser nations with a fair percentage of Profits raised through these transactions applied to such ventures and equally a proportion going to the investor who provides his secured funds through his bank for the period of the trade, usually a 40 week duration.

Generally, so far as we are advised, the trades are risk free as the trader normally sells securities prior to taking delivery and paying for them. These “trades” are all based on sales at a premium to cost to the trader. As virtually trillions of dollars are “traded” on normal working days within the system it is not hard to realise where such vast profits are achieved.

The client’s investment is blocked within his bank for the period of the trade and cannot be moved; the trading entity will obtain a line of credit over the blocked funds and trade in his own rights for the trade period. The client’s return is indicated in a private arrangement with the trader and is not subject to viewing by any third parties which includes people such as you and I who may be involved in the very preliminary activities surrounding the trade.

All matters are confidential and between the client, his bank and the trading bank. He should receive payments according to the contract which normally is for each week for the 40 week period unless some alternative arrangement, to suit the investor/client, is made regarding timing of payment. The profits are paid to an account designated by the investor.

Once the client issues his Proof of Funds and Letter of Intent all dealings are then conducted bank to bank. The client will have a Due Diligence carried out on his application following which direct communication is then conducted bank to bank.

Finally, the client is under no obligation to proceed until he is totally satisfied with the security of his investment funds; the people/bank with whom he is dealing and indication of his weekly profit distribution.

All these matters the client can learn of once he has submitted the Proof of Funds and Letter of Intent. He is under no risk at any stage and ultimately has the power to veto any involvement beyond the first activity until he has received the documentation from the trading side, vetted them and executed them if he is totally satisfied with what is being offered.

His initial submission of P.O.F. and L.O.I. merely begin the chain of events that lead up to him electing to proceed. Or quietly withdrawing without obligation.