Banking Instruments
Trade Finance & Banking Instruments
Expert Advisory on Bank Guarantees and Institutional Liquidity Strategies.
We support institutional clients and private wealth in the structuring, application, and management of banking instruments with top-tier financial institutions — with the rigor and discretion required for every transaction.
Description
— 01
Comprehensive Support with Banking Institutions
From profile assessment to the formalization of the instrument.
Service Description
Hergon Capital provides specialized advisory services to institutional clients and high-net-worth individuals (HNWI) who need to structure, apply for, or manage bank guarantees (SBLCs or BGs) with financial institutions, as support for financing transactions, projects, or credit facilities.
We accompany the client throughout the entire process, either with their own banking institution or with banks with which Hergon maintains advisory relationships, without acting as the issuer or guarantor of the instrument. The final issuance always remains the exclusive responsibility of a regulated banking institution, subject to its own risk assessment and approval criteria.
Scope of Hergon Capital Services
- Analysis of the client’s credit and financial profile to determine the feasibility of the application.
- Preparation and review of the documentation required by the banking institution
- Advisory support in negotiating terms with the issuing institution (term, fees, and collateral).
- Coordination with legal advisors for the review of contractual agreements..
- Monitoring of the due diligence process (KYC/AML/Compliance) required by the bank.
Typical Documentation Required by Banking Institutions
- CIS (Client Information Sheet).
- Board of Directors’ Resolution.
- Documentation evidencing the applicant’s financial position..
- Where applicable, information regarding active credit facilities.
Fees and Commercial Terms
Hergon Capital advisory fees are agreed individually with each client and set out in writing before the mandate begins. Hergon Capital does not charge fees linked to the issuance of the instrument by the bank, nor does it guarantee timelines, amounts, or terms that depend exclusively on the banking institution.
Description
— 02
Advisory on Liquidity Solutions for Banking Instruments
Advisory guidance only — never the management of third-party funds.
Executive Summary
Hergon Capital advises institutional clients and private wealth clients who already hold top-tier banking instruments (SBLCs or other eligible instruments) and wish to explore, with their own financial institutions, alternatives for obtaining liquidity or financing using such instruments as collateral.
This service is strictly advisory in nature: Hergon does not monetize instruments, operate trading platforms involving such instruments, or offer or guarantee returns on funds obtained. Any transaction of this nature is subject to the risk assessment and approval of the banking or financial institution providing the financing.
Scope of Services
- Documentary review and validation of the instrument (CIS, issuance terms and conditions).
- Identification of banking or financial institutions that may assess the instrument as collateral.
- Advisory support in negotiating financing terms, which are never guaranteed by Hergon Capital.
- Coordination of the legal and compliance documentation (KYC/AML) required by the financial counterparty.
- Legal support throughout the formalization of the agreement between the client and the financial institution.
Financing Secured by the Instrument
When a financial institution accepts an instrument as collateral, the loan-to-value (LTV) ratio and the associated terms are determined exclusively by that institution, based on its own risk assessment. Hergon Capital does not set, promise, or broker specific LTV percentages.
Risk Management and Compliance
The entire process is subject to the internal policies of the participating financial institutions and to applicable international AML/KYC regulations and sanctions screening requirements.
Important Notice:
“This content is for informational purposes only and does not constitute a binding offer, guaranteed financial advice, or any promise of returns or results. Hergon Capital does not manage third-party funds or offer investment products with guaranteed returns. Any financing transaction is subject exclusively to the approval of the relevant financial institution.”
Hergon Capital acts as an advisor and arranger of financing transactions, channeling capital through funds and institutional counterparties. The information contained herein is provided for informational purposes only and does not constitute a binding offer or financial, legal, or tax advice. The terms, amounts, and timelines described are subject to analysis of each specific transaction and approval by the relevant counterparties.