POSTD Merchant Banque Carves Niche As Lead Arranger In Structured and Trade Finance Industries
POSTD Merchant Banque (OTC: PMBY) has positioned itself as a mandated lead arranger for corporate financial transactions. The company plays a critical role in structured finance, including origination, structuring, and payment guarantees, aiding trade finance amidst economic uncertainties. The introduction of URDG 758 guidelines enhances security in international trade contracts. However, the company has rescinded its acquisition of Banco PyME de la Comunidad SA, which may influence its strategic direction moving forward.
- PMBY's role as a mandated lead arranger positions it favorably within the structured finance sector.
- The use of URDG 758 enhances financial security in international trade, a competitive edge for PMBY.
- The rescinded acquisition of Banco PyME de la Comunidad SA may indicate operational setbacks or strategic reevaluation.
LOS ANGELES, Jan. 25, 2022 (GLOBE NEWSWIRE) -- POSTD Merchant Banque (OTC: PMBY) (“the Company''), is a mandated lead arranger for corporate to bank structured and trade financial transactions. The lead arranger, or the mandated lead arranger (MLA), is the investment bank or underwriter firm that facilitates and leads a group of investors in a syndicated loan for major financing(s). The lead arranger assigns parts of the new issue to other underwriters for placement and usually takes the largest part itself. The arranger is paid either through an arranger fee, through skimming or through structuring fees. Trade finance covers various financial instruments that support companies' exports and imports; the world's largest trade finance providers include HSBC Holdings PLC, Citigroup Inc., BNP Paribas SA, Standard Chartered PLC and Deutsche Bank AG. Revenues could even rise beyond pre-coronavirus pandemic levels as soon as in 2022, according to a forecast made by Coalition, an S&P Global-owned research company.
POSTD Merchant Banque performs key functions of:
Origination – The process by which a lender originates, develops and closes financing transactions, beginning with borrower acquisition and ends when the facility documents are signed;
Structuring – Designing and negotiating the financing arrangement with the borrower and setting tiers according to commitment amounts; and
Payment Guarantee- Assures a seller the purchase price is paid on a set date. An advance payment guarantee acts as collateral for reimbursing advance payment from the buyer if the seller does not supply the specified goods per the contract. A credit security bond serves as collateral for repaying a loan.
Distribution – Identifying which banks to invite to participate and the marketing to those banks.
URDG 758 Demand Guarantee Financial Instrument
ICC Uniform Rules for Demand Guarantees URDG 758 are increasingly being incorporated into international trade contracts, where they provide a welcome element of financial security and trust in a precarious economic climate like we face today.
“With trust and confidence eroded by the financial crisis, URDG 758 provides tremendous security,” said Georges Affaki, Head of Structured Finance Legal Affairs at BNP Paribas and Vice-Chair of the ICC Commission on Banking, who led the two-and-a-half-year revision, with input from thousands of exporters, importers, bankers and lawyers.
The Uniform Rules for Demand Guarantees (URDG) refers to a set of international guidelines produced by the International Chamber of Commerce (ICC) and adopted in 1991. ... In general, the URDG guidelines outline the rights and obligations of parties under demand guarantees.
“By clarifying the presentation and examination process and excluding imprecise standards, URDG 758 foster certainty and predictability,” added Mr. Affaki.
“As a mandated lead arranger, PMBY’s use of URDG 758 puts us in a niche where not only do we originate and underwrite corporate to bank transactions, we also provide a very attractive financial instrument to guarantee our deals, which provides a safety net for our syndication partners,” said CFO Muhammed Khan.
Shareholder Update
The company announces that it has rescinded its acquisition of controlling interest in Banco PyME de la Comunidad SA.
About POSTD Merchant Banque
POSTD Merchant Banque (PM Banque) is a duly registered non-depository financial institution that offers clients access to growth capital in the private markets through institutional debt or equity, far beyond what traditional banks can and will provide. Combining global reach with personal, bespoke service, we provide our clients with comprehensive corporate finance advisory services tailored to fit to your needs.
The company website can be found at: www.postdmerchantbanque.com.
Safe Harbor Statement
This release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E and/or 27E of the Securities Exchange Act of 1934 that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company and the risks and uncertainties detailed from time to time in reports filed by the company with the Securities and Exchange Commission. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, the company's ability to raise necessary financing, retention of key personnel, timely delivery of inventory from the company's suppliers, timely product development, product acceptance, and the impact of competitive services and products, in addition to general economic risks and uncertainties.
Sources:
https://pecunica.com/knowledge-point/what-are-the-lead-arranger-functions/
https://search.yahoo.com/search?fr=mcafee&type=E211US752G0&p=payment+guarantee+investopedia
https://www.investopedia.com/terms/b/basell-iii.asp
FAQ
What is POSTD Merchant Banque's role in structured finance?
How does URDG 758 impact international trade for POSTD Merchant Banque?
What significant announcement did PMBY make regarding Banco PyME de la Comunidad SA?
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