INSTRUMENT ISSUANCE PROCEDURES

At Ntua Ventures Limited (NVL), we specialize in providing trade finance solutions to clients in the commodities industry, particularly those who have special relationships that allow them to secure preferential pricing when purchasing commodities. Clients can work with us in two ways:

1.  Standard Issuance Procedure (SIP)
2.  Joint Venture (JV)

1. Standard Issuance Procedure (SIP)

This is our standard method for issuing trade finance instruments. The steps involved are as follows:

I. NVL provides the client with a draft of the trade finance instrument.
II. The client reviews the draft with any relevant third parties (e.g., the beneficiary).
III. If necessary, the client requests changes by completing and submitting the NVL Amendment Form.
IV. NVL provides a revised draft. The client reviews the changes, repeating step III if further amendments are needed. If no further changes are required, proceed to step VI.
V. The client provides NVL with the following documents:

•   A signed and approved copy of the final draft for issuance
•   Certificate of incorporation of the client’s company
•   A list of shareholders of the client’s company
•   A passport copy of the main shareholder of the client’s company
•   The NVL Agreement, signed by the authorized signatory of the client’s company

VI. NVL receives the required issuance fees as per the agreement.
VII. The issuing institution issues the instrument as per the wording approved by the client.
VIII. The client receives a SWIFT copy of the issued instrument.

2. Joint Venture (JV)

In the Joint Venture method, NVL collaborates with clients who may not have the ability to pay the full issuance fees upfront but have secured a favorable commodity transaction. This method allows the client to move their deal forward with NVL’s assistance. The process is outlined below:

I. NVL provides the client with a draft of the trade finance instrument, such as a Letter of Credit (LC), and the draft is reviewed and approved.
II. If the client is unable to pay the full issuance fees, they may request NVL to assist by moving the deal forward through the JV method.
III. The client pays an initial fee to cover the costs of sending a SWIFT message to the beneficiary’s bank.
IV. The client completes the application form and submits it along with their Client Information Sheet (CIS).
V. NVL sends the client the following:

•   A complete draft of the instrument
•   An invoice
•   An agreement to be signed by the client

VI. NVL sends a SWIFT message to the beneficiary’s bank, requesting confirmation that:

•   The beneficiary’s bank will advise the instrument to the beneficiary
•   The beneficiary affirms that they will ship the goods once the original LC is advised to them

VII. The SWIFT message will include the text of the instrument to be issued. The fees for this SWIFT message will be based on our RWA/Pre-Advice pricing.
VIII. Upon receiving a SWIFT response from the beneficiary’s bank confirming their agreement to advise the instrument and the beneficiary’s confirmation that they will ship upon advice, NVL will proceed to issue the original instrument without any additional upfront fee.

JV Eligibility Criteria

For a client to qualify for the Joint Venture method, the following conditions must be met:

•   The client must be purchasing a tradable commodity at a favorable price.
•   The Letter of Credit must require that the full set of bills of lading be consigned to the issuer.

If a client is interested in working under this method, NVL will carefully examine the details of the transaction and determine if it qualifies for the Joint Venture.

By offering these two methods, Ntua Ventures Ltd ensures that clients can access the trade finance solutions they need, whether through the standard issuance procedure or through a joint venture tailored to their financial capabilities