Instrument & Service Description:

A Long-Term Note (LTN) is a type of debt security with a maturity period that typically exceeds 10 years. These notes are issued by corporations, governments, or financial institutions to raise capital, and they pay periodic interest (known as coupons) to investors until the note matures. At maturity, the issuer repays the principal, or face value, of the note.

Key Features of Long-Term Notes (LTNs):

1. Maturity Period: LTNs generally have maturities of more than 10 years, with some stretching to 30 years or longer, depending on the issuer and the structure of the note.
2. Interest Payments: Like other debt instruments, LTNs pay interest either at a fixed rate or a floating rate. These interest payments are typically made on a semi-annual or annual basis.
3. Higher Yield: Due to the longer time horizon and associated risks (such as inflation and interest rate changes), LTNs typically offer higher interest rates compared to short-term and mid-term notes.
4. Risk Factors:

– Interest Rate Risk: Because they have a longer maturity, LTNs are more sensitive to changes in interest rates. If interest rates rise, the value of the LTN may decline in the secondary market.

   – Inflation Risk: Over long periods, inflation may erode the purchasing power of the fixed interest payments.

   – Credit Risk: The issuer’s creditworthiness could change over time, potentially impacting the note’s risk and return profile.

5. Liquidity: LTNs may be traded in the secondary market, though liquidity can vary depending on market conditions and the issuer. Some LTNs might be less liquid than shorter-term notes or bonds.
6. Callable Features: Some LTNs have a “callable” feature, which allows the issuer to repay the note before its maturity date, typically after a specified period. This feature gives issuers flexibility to refinance the debt if interest rates decline.

Types of Long-Term Notes:

– Corporate Long-Term Notes: Issued by corporations to finance long-term projects or capital expenditures.

– Government Long-Term Notes: Issued by national governments (e.g., U.S. Treasury bonds) to finance infrastructure, defense, and other long-term public sector investments.

Benefits for Investors:

– Steady Income: LTNs offer a predictable and stable stream of income through regular interest payments.

– Higher Yield: The longer duration typically provides higher interest rates than shorter-term debt securities.

– Capital Preservation: For conservative investors, LTNs from highly rated issuers offer a safer way to preserve capital over the long term.

Benefits for Issuers:

– Long-Term Financing: LTNs provide issuers with a source of capital that does not require frequent refinancing.

– Fixed Obligations: With fixed interest rates, issuers know their debt service costs over an extended period, helping with long-term financial planning.

Examples of Long-Term Notes:

– Government Bonds: U.S. Treasury bonds with maturities of 10 to 30 years are a common example of long-term notes.

– Corporate Bonds: Companies may issue long-term bonds to fund long-term investments like new factories, research, or acquisitions.

In summary, Long-Term Notes offer both investors and issuers the ability to lock in financial commitments over an extended period, balancing the higher yields and risks associated with long-duration instruments.

LTN settlement process is fast, transparent and uses the Swift Delivery process. Swift is a well established European (Belgium) financial transaction settlement network that was founded in 1973 by group of investors and continues to operate successfully employing over 3500 people today.

This Monetization service is ideal for clients looking to Discount, Monetize, or create an immediate non recourse loan against an LTN Bond or Note that they own because  this monetization method is the cleanest, fastest and cheapest way to do it!

The Monetization process allows the client to retain ownership of their LTN while at the same time creating a Non Recourse Loan against the LTN each year.

Monetization LTV:

• 15% to 35% Non Recourse

Estimated Completion Time:

• 7 to 14 Days after all documents are signed and verified or 3 Days After Instrument Euroclear Delivery.

Brokers & Consultants:

• Always 100% Protected with our Fee Protection Agreement
• Commission is free, clean and clear from any tax.
• Commission is paid directly to Brokers Account, No Third Party pay Master.
• We offer only 1 Master Broker License Per Country and 3 Sub Brokers Per Country
• Register here as a Broker now!

Closing Process:

1. After Setting up Client Line of Credit Account for a Non-Recourse Loan, and execution of the monetization contract by both parties the Client will instruct his Issuing bank to assign the LTN using the swft Delivery to the bank coordinates provided by the Monetizer.
   
   
2. The Clients Issuing Banker shall immediately Respond via Swift 799 a certified execution receipt of the LTN delivery to the Monetizer.
   
   
3. Upon receipt and confirmation of the Swift assignment and delivery, the Monetizer will within maximum three (3) banking days grant a Non Recourse Loan for the LTV as agreed from its nominated bank to the Client.
   
   
4. The Monetizer agrees to return the LTN unencumbered fifteen (15) calendar days before the 1 year anniversary of the signed contract between the parties.

Example:

The LTN is listed on Euroclear with a Value of Maturity: $100,000,000,000

The LTN is Monetized Non Recourse at 32% LTV being: $15,000,000,000

The Client is paid the USD equivalent of $15,000,000,000

Top 6 Reasons Why Aramco capital Trading is #1

1.       An Aramco Trading Company.
2.       Funded by Oil Rich Saudis
3.       Your Privacy is our Priority.
4.       Our Integrity is Non Negotiable!
5.       We are the Provider for up to 99% of Deals in the market.
6.       We Operate our own Private Placement Program & Account Management Systems.

Critical Compliance Criteria:

• Accepted Criteria: The LTN MUST be on Euroclear for confirmation only and must be sent via Swift for the Monetization (Client Must Open a Line of Credit, Trading Account)
• Rejected Criteria: Any LTN NOT on Euroclear and not willing to be sent via the Swift Network.

Client Standards:

Capital Trading requires clients meet key standards and pass compliance in order for us to consider working with them. We do not accept all clients because doing business with Capital Trading is a unique Privilege given solely to real, genuine, authentic clients, not a Right that is attainable by all. View our required Client Standards here.

Summary:

We solely deal with real deals, real people and real LTNs that need real monetization. Euroclear is the Gold Standard that validates that your LTN is real while the Swift Network is a Standard Transmission Network for Real LTN Delivery and it provides a respected industry platform where free settlement can be facilitated. Your LTN MUST be on Euroclear, or Domiciled in the Swift Basin, if its not on Both we are not accepting your deal.

With Years of Finance Trading and Oil Industry Experience, Aramco Trading Executive Team understands the Banking Industry from the Trading Perspective, because members of our Executive worked in the Financial Instruments Department of a World Top 100 Bank. We can Achieve Results others can’t because we understand from the Inside, what it takes to close a deal from the Outside!