Alternative LTN Purchase Information
S A M P L E P R O G R A M I L L U S T R A T I O N - 7 7
Global Bond Purchase Program
For Primary LTN Purchase Program click here.
Global Bond Purchase Program
For Primary LTN Purchase Program click here.
NOTE: SRM is temporarily suspending activity with this program. We may reassume activity again based on information we receive in the future.
OVERVIEW – This purchase program is for Titleholders of Brazilian National Treasury bonds who desire to place a qualifying bond into a program that utilizes a securitization process to create global bond value and enable sale for a significant price. Program eligibility requirements are:
Program Provider
The company that is coordinating the sale and purchase:
Estimated Purchase Price
The sale price allocated to Titleholder is approximately 7% of the future value (PU+) of the government debt instrument. Based on available information when this overview was written and on a BRL/USD exchange rate of .20 the Titleholder gross proceeds for a:
Transaction Costs
The Titleholder is responsible for the following Transaction Costs:
Funding Group May Finance Initial Cost
For Titleholders who previously submitted a bond to SRM’s Primary LTN Program (Program 99—still pending) and who are unable to pay the full Conversion Fee, SRM is negotiating with a funding group to finance all or a portion of the Conversion Fee in exchange for the funding group’s participation in a profit share portion of the Titleholder’s gross sales proceeds.
Availability of this funding assistance will be announced after arrangements are finalized.
Transaction Process
Titleholder receives the approximate purchase price indicated above, less the payment of the 10% profit share portion
for the introducing consultants;
b. If the Global Bond Conversion Fee is paid by a funding group:
Titleholder receives the approximate purchase price indicated above, less the payment of the 10% profit share portion
for the introducing consultants and the payment of a profit share to the funding group contracted with SRM to
provide funding assistance for payment of the Global Bond Conversion Fee.
Prior to execution of contracts, transaction terms are subject to change at any time and without notice.
Why is SRM publishing information about this Alternative LTN Purchase Program?
SRM still believes our primary LTN purchase program, referenced elsewhere on this website, is credible. However, due to the amount of time it is taking that purchase group to acquire the initial funding required to launch its operations at no up-front cost to bond owners, we decided to investigate more deeply an alternative purchase program that we have been aware of for some time. After evaluating the information about this new purchase program that was made available to us, the SRM LTN team believes this alternative program will be a credible alternative to our original LTN purchase program...for some of our clients, and we wanted to make it available to LTN titleholders who may desire an alternative method of selling/monetizing an LTN.
- Bond must be dematerialized and Titleholder must have current STN black screens.
- New Titleholder clients must be able to pay initial authentication and conversion expenses.
- Titleholders who registered bonds for sale through SRM Services prior to July 2023 may be able to finance authentication and conversion expenses.
Program Provider
The company that is coordinating the sale and purchase:
- Is a Private Limited Liability Securitization Company operating internationally under the laws of Malta.
- Is skilled in converting illiquid assets into viable structured liquid assets.
- Custom structures government debt instruments into credit-linked, asset-backed instruments that can be sold for value on European public exchanges.
Estimated Purchase Price
The sale price allocated to Titleholder is approximately 7% of the future value (PU+) of the government debt instrument. Based on available information when this overview was written and on a BRL/USD exchange rate of .20 the Titleholder gross proceeds for a:
- Z-Series bond with a PU+ value of 120B BRL is approximately $1,168,000,000 USD.
- H-Series bond with a PU+ value of 14B BRL is approximately $196,000,000 USD.
Transaction Costs
The Titleholder is responsible for the following Transaction Costs:
- Consultant compensation in the form of a profit-share agreement with SRM Services to have 10% of Titleholder’s gross sale proceeds paid to the introducing consultants.
- The initial bond authentication and conversion fee of €220,000 EUR (“Conversion Fee”).
Prior to payment of the Conversion Fee, the Program Provider will evaluate and validate the bond and affirm that it is eligible and can be converted into a securitized global bond.
Funding Group May Finance Initial Cost
For Titleholders who previously submitted a bond to SRM’s Primary LTN Program (Program 99—still pending) and who are unable to pay the full Conversion Fee, SRM is negotiating with a funding group to finance all or a portion of the Conversion Fee in exchange for the funding group’s participation in a profit share portion of the Titleholder’s gross sales proceeds.
Availability of this funding assistance will be announced after arrangements are finalized.
Transaction Process
- Titleholder submits the required government bond package to SRM.
- Titleholder signs a profit share agreement with SRM to compensate introducing consultants.
- SRM submits Titleholder package to Program Provider for review and approval.
- Program Provider speaks directly with Titleholder to provide full program details.
- Titleholder performs due diligence on Program Provider.
- Titleholder receives and signs contract with terms and conditions.
- The Program Provider examines the bond and affirms that it qualifies for securitization and that the Program Provider has purchase commitments for securitized assets from qualified Buyers.
- Titleholder pays the Conversion Fee or signs a profit share agreement with a third-party funding group to compensate them for paying this initial fee.
- Program Provider creates a Global Bond and lists it on an appropriate European public exchange.
- Qualified and contracted buyer executes sales and purchase agreement.
- Gross sale proceeds are received by transaction paymaster.
- Paymaster distributes payment per one of the two following scenarios:
Titleholder receives the approximate purchase price indicated above, less the payment of the 10% profit share portion
for the introducing consultants;
b. If the Global Bond Conversion Fee is paid by a funding group:
Titleholder receives the approximate purchase price indicated above, less the payment of the 10% profit share portion
for the introducing consultants and the payment of a profit share to the funding group contracted with SRM to
provide funding assistance for payment of the Global Bond Conversion Fee.
Prior to execution of contracts, transaction terms are subject to change at any time and without notice.
Why is SRM publishing information about this Alternative LTN Purchase Program?
SRM still believes our primary LTN purchase program, referenced elsewhere on this website, is credible. However, due to the amount of time it is taking that purchase group to acquire the initial funding required to launch its operations at no up-front cost to bond owners, we decided to investigate more deeply an alternative purchase program that we have been aware of for some time. After evaluating the information about this new purchase program that was made available to us, the SRM LTN team believes this alternative program will be a credible alternative to our original LTN purchase program...for some of our clients, and we wanted to make it available to LTN titleholders who may desire an alternative method of selling/monetizing an LTN.
Begin Your LTN Connection With SRM Via Our
Alternative LTN INFORMATION FORM
Mention your interest on our Alternative LTN Purchase Program
Alternative LTN INFORMATION FORM
Mention your interest on our Alternative LTN Purchase Program
GLOBAL BOND PURCHASE PROGRAM - SUBMISSION REQUIREMENTS:
Items Required for SRM Initial Review
- STN Certificate of Repactuation *
- STN Certificate of Recognition *
- STN Certificate of PU *
- STN Certificate of Ownership / Control of Public Debt - CODIV *
- Most recent GRU Tax Report & Tax Paid Receipt *
* Dated during or after 2017.
Items Required Prior to SRM Submitting Package to Program Provider
- Funding Group contracted to advance Global Bond Conversion Fee, if applicable.
Prior to execution of contracts, transaction terms are subject to change at any time and without notice.
GLOBAL BOND PURCHASE PROGRAM - SUBMISSION REQUIREMENTS:
Items Required for SRM Initial Review
- CIS & PP from from Titleholder. (Full KYC is not required.)
- Black Screens titled in the name of the CIS Applicant (dated during or after 2017) and Carta.
- RWA statement to pay Global Bond Conversion Fee OR to finance the Conversion Fee and compensate the funding group a transaction profit share for funding assistance.
- Corporate Resolution if bonds are titled in a corporate name.
- STN Certificate of Repactuation *
- STN Certificate of Recognition *
- STN Certificate of PU *
- STN Certificate of Ownership / Control of Public Debt - CODIV *
- Most recent GRU Tax Report & Tax Paid Receipt *
* Dated during or after 2017.
Items Required Prior to SRM Submitting Package to Program Provider
- Submission Summary & Genealogy document.
- Profit Share Agreement(s) for:
- Funding Group contracted to advance Global Bond Conversion Fee, if applicable.
Prior to execution of contracts, transaction terms are subject to change at any time and without notice.
To receive LTN assistance from SRM Services: If your bond portfolio meets the criteria listed above, we invite you to submit general information about your bond portfolio using our online LTN Information Form. Upon an acceptable review of your LTN Information Form we will communicate back to you and arrange to send you a Program Overview of the LTN program mentioned above as well as other important documents needed to proceed.
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Mailing Address: 3210 Chestnut Glen Ln, Colorado Springs, CO 80918
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Registered Business Address: 25 First Avenue SW, Suite A, Watertown, SD 57201
Mailing Address: 3210 Chestnut Glen Ln, Colorado Springs, CO 80918
Privacy Notice
