Financial instruments are assets classified in the securities market, whose value is based on the value of other underlying assets. They enable major banks to issue bank guarantees of various classifications. Asset types include bonds, equities, fixed income, stocks, stock indexes and financial derivatives, which are settled in the future.

We offer legal advice on various financial transactions, including the purchase and sale, leasing, monetization and banking of all types of assets (movable and immovable) and monetization and banking of financial instruments, such as BG, SBLC, CD, BANK DRAFT, LTN and MTN, among others, all of which can be successfully used for:

• Oil and commodities trading.
• Improving credit.
• Demonstrate ability to enter into investment opportunities.
• Obtain loans and financing for companies or projects.
• Serve as guarantee, security, or collateral for any transaction.
• Monetization or PPP (Private Investment Program – Trading Platforms).

A BG is provided by a bank to support contracts between two parties, assuming responsibility in case of non-payment, being our clients both Applicants and Beneficiaries of these.

Guarantees the payment of obligations and is only used if the originator fails to meet its commitments. It may be governed by its own rules or by documentary credit rules. They are similar to private guarantees and bank guarantees.

Document evidencing ownership of goods deposited in a depository of banks and/or financial institutions and issued by them, transferable by endorsement.

It is similar to a bank check, and is a method of payment whose amount is guaranteed by the issuing bank. When a payer requests a bank check, the funds are withdrawn from the payer’s account and held in the bank’s reserve account until the check is presented for collection by the payee. This process ensures that the specified amount is backed by the issuing bank.

Bank checks offer a higher level of security for beneficiaries compared to personal checks. The bank’s guarantee reduces the risk of insufficient funds or payment problems, providing the payee with a more reliable form of payment. This increased security makes bank checks the preferred choice for transactions where a verifiable and guaranteed method of payment is essential.

Document issued by a bank certifying financial capacity and availability of cash funds for specific transactions.

Document that recognizes the custody of an asset by a bank and/or financial institution or securities company, allowing its monetization and use as a source of financing or proof of funds. They are issued with ISIN/SEDOL codes and are verifiable on the London Stock Exchange.

LTNs are financial instruments designed to meet long-term financing needs. Their extended maturity, typically exceeding 10 years and possibly extending for decades, makes them ideal for large-scale projects requiring substantial investments over time.

These projects may include infrastructure construction, facility expansion, long-term research, or any initiative demanding sustained financial commitment.

Due to their long-term nature, LTNs are often exposed to higher risks associated with economic changes, interest rates, and market conditions over time. However, they also offer the potential for higher returns compared to short-term debt instruments.

MTNs, in contrast, are more flexible instruments in terms of maturity. With maturities ranging from 1 to 10 years, MTNs offer adaptability to the specific needs of the issuer. They can be used to finance medium-term projects, cover operating expenses, or respond to fluctuations in capital demand without committing to an extended borrowing period.

MTNs tend to involve less risk compared to LTNs but also offer more moderate returns. Their flexibility makes them an attractive option for companies and governments seeking a balance between financial stability and responsiveness to changes in the economic environment.

The purpose of which is to obtain greater financial leverage and use as collateral for business projects and financial transactions.

Leasing of bank guarantees and other types of financial instruments, to be used as collateral in financial transactions and business investment projects.

Conversions of instruments such as BG, SBLC, LTN, MTN, CD into cash via Euroclear, SWIFT, DTCC and Bloomberg. Requirements include deposit of the asset in the client’s account, free disposal, transferability and bank verification.

Detailed process of monetization or discounting of a bank Swift using the Swift Mt 799 – Mt760 protocol, with variable monetization percentage based on the solvency of the issuing bank.

Use of financial assets and real or personal property as collateral backed by commercial banks.

Process of deposit, custody, appraisal and insurance of works of art for use in banking and as collateral in secondary market transactions.

Procedure to bank real estate properties in excess of 20 million euros, with requirements of freedom from encumbrances and generation of rental income.

Similar process to other assets, serving as collateral in secondary market transactions.

Comprehensive legal advisory service for financial transactions, very complete and tailored to the specific needs of clients. The incorporation of assets into bank records to back bank guarantee issues is a common practice, and the percentage of collateralization at current market value can offer some flexibility.

It is crucial to assess the risk and contingency implications associated with these transactions. Factors such as market volatility, changes in economic conditions and regulations can influence overall risk. A comprehensive approach to assessing and managing these risks is essential to providing a robust and reliable service to our clients.