NVC EDI Commercial Transaction Platform was established in 2018 as a Special Purpose Entity with NVC Fund LLC to specialize in electronic data interchange and credit insurance for marketable risks. The platform provides financing solutions like loans, guarantees, and insurance to companies and has a target of managing over $5 billion for each of its 452 sector joint venture partners by recapitalizing them. It aims to significantly increase its business and achieve a net profit of 10 billion by the end of 2019.

1. NVC EDI COMMERCIAL
TRANSACTION PLATFORM
2018 – Establishment of NVC EDI PLATFORM with NVC FUND LLC jointly as a Special Purpose Entity (SPE).
NVC EDI SPE, specializes in Electronic Data Interchange and Credit Insurance (marketable risks).
GENERAL INFORMATION
 NVC FUND HOLDING TRUST
As a Non-Statutory Business Trust in 2000
Registered NVC FUND, LLC -DELAWARE USA
Negotiations RTGS-Real Time Gross Settlements
Negotiations IMPS-Immediate Payment Service
Negotiations NEFT Systems-National Electronic Funds Transfer
Confirmed Audited Capitalization
Confirmed Trust Units valued at $48,800 per unit
 Confirmed Standard Industrial Reserve Capitalization
SHAREHOLDERS & JOINT VENTURE SPE
 Frank Ekejija, Group Chairman /CEO
 DALLAS, TEXAS USA, HQ Office
 100,000 EDI REGISTERED PARTNERS
 452 SIC JV Recapitalization: Over $5B+ Each
 URDG 758 Same Day Platform
1
https://pb.nvcfund.com
www.nvcfund.com

2.  NVC FUND, LLC is registered as a LLC in the State of Delaware
 Authority to issue commercial and financial guarantees on behalf of
NVC FUND HOLDING TRUST.
 NVC FUND HOLDING TRUST is a Multilateral Financial and Institutional Trust
We Specialize In:
 NVC PLATFORM EDI Transactions
 Fund of Funds
 Private Banking
 Balance Sheet Credit Enhancements
 Issuing Of Commitments
 Issuing Commercial & Financial Guarantees
 Providing Advisory Services
*
2

3. Shareholders General Assembly
Supervisory Board ( election of members)
Board of Directors ( election of members)
Interministerial Committee for Financing, Guarantees and
Insurance ( election of members; approves transactions on behalf
and for the account of the Sovereign)
Statutory Auditors External
Special Purpose Entity as an organization
functioning as a recapitalized SPE JV
Country of Barbados subsidy grants
authority to Tesla Re for the organisation to
functions and issuance of Insurance
ABOUT US
LEGALFRAMEWORK GOVERNANCE
3

4. FORMS OF GUARANTEES & STANDBY’S
Functions Typical amount Validity
Counter
Guarantee /
Standby
Issued to support issuance of a
separate Standby or Guarantee or
other such undertaking by the
beneficiary of the Counter Standby.
Mainly issued by a Bank in one
Country to request a Bank in another
country to issue their local
undertaking.
100% of the value of
the transaction 30 days after the expiation
of the instrument it is
supporting
Lease / Rental
Security for landlord / leaser in the
event lessee or renter unable to
make payment
100% of contract /
lease value
Until expiry of lease.
Can revolve on a
monthlybasis.
Direct Pay
Support payment when due of an
underlying payment obligation
typically in connection with a
financial standby without regard to
default. This standby is also used to
directly pay an obligation where the
only conditions of paymentare the
passage of the term andpresentment
of payment.
100% of the value of
the transaction
Economic lifetime
depends on nature of
underlying transaction
Insurance
This instrument is an insurance or
reinsurance obligation of the
applicant.
25% - 75% of riskquotient
Until expiry of contract or
end of contractually
obligations + further
claim period
Reclamation
Covering the cost of repairing
environmental damages caused by
worked conducted by the applicant
50% - 100% of
estimated damages
Until end of warrantyperiod
Margin Cover brokerage firm’s margin
requirements
50% - 100% of tradinglimits Until end of tradingactivity

5. FORMS OF GUARANTEES & STANDBY
Function Typical Amounts Validity
Bid / Tender Bond
Security for beneficiary that terms of
tender will be fulfilled by the applicant if
their bid has been accepted
20 - 30% of contractvalue
Until the end of
tenderingor contracting
Advance Payment Guarantee
Security for beneficiary that the down
payment will be paid back if terms of
contract are not fulfilled by the applicant
Amount of down
payment (sometimes
incl. interest)
Date of expected
delivery/ performance
+ further claim period
Delivery Guarantee Security for beneficiary that delivery as
per contract will be or has been
effected
20% - 30% of contractvalue
Until delivery/
performance+ further
claim period
Commercial
Supports the obligations of an applicant
to pay for goods or services in the event
of non- payment by a business debtor
100% of the value of
the transaction
Economic lifetime
depends on nature of
goods and services
provided
Performance Bond
Secures payment of the guaranteed sum
when the party whose performance is
guaranteed by the guarantee fails to
perform or discharge in full his contractual
obligations
10% - 15% of contractvalue
Until expiry of contract or
end of contractually
obligations + further claim
period
Guarantee for Warranty
Obligations Covers risk of buyer that goods are of bad
quality or breach of warranty 25% - 50% of contractvalue Until end of warranty period
Payment Guarantee
Security for the beneficiary in case that
the debtor (applicant) fails to pay Contract value
Due date of payment+
further claim period
5

6. •Issued by the ICC
•Effective July 2010
•Replaces the URDG 458
•Internationally acclaimed
•Consists of 35 articles
•Reflects International practice in the use of demand guarantees
•Sets out the liabilities and responsibilities of the parties to a demand guarantee
•Shares Independence and Documentary nature with the UCP 600 and ISP 98
•Details vital phases in the lifecycle of a demand guarantee
•Offers model guarantee and counter-guarantee forms
URDG 758 – UNIFORM RULES
FOR DEMAND GUARANTEES
6

7. COMPARE SIDE – BY – SIDE……..
Demand Guarantee
•Irrevocable Undertaking
•ICC issued Rules Based
•Recognized Internationally including the US
•Independent of the underlying Relationship
•Issued by Guarantor
•At request of Instructing Party
•In favor of Beneficiary
•Guarantor deal with documents and not with goods,
services or performances to which the documents
may relate
•Provide for payment against complying
documentary demand
•Finite Expiration
•FiniteAmount
•Defined Payment / Documentary Rejection Process
•Transferrable / Assignable
Standby Letter of Credit
•Irrevocable Undertaking
•ICC issued Rules / Articles Based
•Recognized Internationally including the US
•Separate from sale / contract
•Issued by Issuing Bank
•At request ofApplicant
•In favor of Beneficiary
•Banks deal with documents and not with goods, services
or performances to which the documents may relate
•Honor complying documentary
presentation
•Finite Expiration
•FiniteAmount
•Defined Payment / Documentary Rejection Process
•Transferrable / Assignable
7

8. URDG: Areas To Address In Contractual Agreements
Quotation Service By
NVC EDI SPE
Scope
of
Performance
8

9. URDG: Building Relationships
NVC EDI SPE
Scope
of
Relationships
9

10. URDG: TELEX TO SWIFT DELIVERY
NVC EDI SPE
Contract
Clauses
10

11. 11

12. Compliant with the
ICC Demand Guarantee Rules
URDG 758
LETTERS OF
GUARANTEE
12
COMMERCIAL GUARANTEES
BID BONDS
ADVANCE PAYMENT BONDS
PERFORMANCE BONDS
WARRANTY BONDS
PAYMENT GUARANTEES

13. GUARANTEES
NVC EDI SPE, issues guarantees on behalf and for the account pledged under bond power. These are guarantees, ensuring
access to financing for companies while reducing the credit risks incurred by lending or banking institutions. Under the
guarantee issued by NVC FUND LLC e, as an Agent, companies can develop their activities, access global funds or expand
their export business.
THE GUARANTEE:
Covers up to 90% of the principal of the loan that a company may contract from a bank
Tenor related to loan period
NVC Platform is a price-maker
THE COUNTER-GUARANTEES - STARTING 2018
Covers up to 90% of the principal of the Letters of Guarantee
Tenor related to the L/G period
NVC EDI SPE, as a price-taker
For the guarantees issued on behalf of a bona fide, qualified entity, with a value of max. EUR 1 M+ and a tenor of max. 10
years, the application is processed by NVC FUND LLC in max. 10 days upon receipt of the complete documentation.
13

14. 14

15. INSURANCE
NON-MARKETABLE
RISKS
SHORT TERM EXPORT CREDITINSURANCE
- Covers up to 85% of the export contract value against commercial and politicalrisks
- Solutions for non-marketable risks (exports to non-EU, non-OECDcountries)
MEDIUM AND LONG TERM EXPORT CREDIT INSURANCE
- Covers deliveries with repayment term longer than 2 years against commercial and political risks
- Fully compliant with OECD Consensus
BUYER’S CREDIT INSURANCE
- Covers loans contracted by foreign buyers to purchase goods or services of Internationaln origin
- Covers up to 95% of the exportsvalue
INSURANCE OF CAPITAL INVESTMENTSABROAD
- Covers receivables derived from an investment project against political risks
- Covers up to 90% of the investmentvalue
EXPORT GUARANTEES INSURANCE - starting2018
- Covers unfair calling of export guarantees and fair calling due to political reasons (war, embargo, etc)
- Covers up to 95% of called guarantees
15

16. INSURANCE – MARKETABLE RISKS
Facilities the Joint Ventured in 4th Quarter 2018
NVC EDI SPE
EXPORT CREDIT INSURANCE
TRADE CREDITINSURANCE
SURETY INSURANCE
COMMERCIAL PROPERTYINSURANCE
GENERAL THIRD PARTY LIABILITY INSURANCE
REINSURANCE INSURANCE
16

17. OUR MISSION
BUSINESS RESULTS FORECAST FOR 2018
NVC FUND LLC will significantly increased its business over the next year and
has the ability to achieve performance rates that places its performance above
marketaverage.
Thus, our financial traget by the end of 2019:
•Net profit: Local 10 Billion mn.
• Solvency rate: 80% (banking system average: 17.3%)
• NPL ratio: 3.1% (13.9%)
•SPE JV Funds under management: NVC FUND LLC acts as an agent for its international clients, on behalf
and for the account of the managed funds and recapitalization under NVC Platform.
• Target Rates of return:
 ROA 1.2% (-1.2%)
 ROE 4.3% (-11.6%)
The potential capacity of extending loans to the market can be assessed by the proportion of loans
The total exposure of the SPE is expected to increase by 4% in 2019
17

18. ASSUMPTIONS
Total Forecasted Exposures
576
752
1.479
1.780
2.969
3.659
4.542
4.721
369
507
716 723
1.309 1.366
2.074
2.364
0,2%
0,4%
0,4%
0,5%
0,7%
0,8%
1,2%
1,5%
0,0%
0,2%
0,4%
0,6%
0,8%
1,0%
1,2%
1,4%
1,6%
1,8%
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
5.000
Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 Yr. 6 Yr. 7 Yr. 8
NVC EDI PLATFORM SPE NVC EDI SPE
Forecast of Exposures
TOTALEXPOSURE Own name & account Lending market share (rhs)
18

19. PRO FORMA FORECAST
0% 5% 10% 15% 20% 25%
Forecasted of New exposures in 2018
2018 Activity
Wholesale & RetailTrade
Energy
Equipment & Machinery
Transportation & Storage
Electrical Equipment
Furniture
Railroad Cars
Postal Services, Telecommunications & IT
Timber Processing
Basic Metals
Chemicals
Construction
Food
Other
Agriculture
Services
Water Distribution & Waste Management
Engineering & Technical Consultancy 19

20. TARGET CLIENTGROUPS:
Companies with high development
potential
Exporters and potential
exporters
SPE
BUSINESS
PILLARS
FINANCING GUARANTEE INSURANCE
ABOUT US
UNIQUE INSTITUTION IN THE INTERNATIONAL FINANCIAL MARKET
In order to come closer to the
targeted corporate customers and
to increase its presence the
SPE JV operating through 4units.
20

21. 3000000
(thousands
Local)
2500000
2000000
1500000
1000000
500000
Guarantees –SPE JV
2018-2018
FORECAST
21
1,6%
7,0%
16,5%
22,5%
24,7%
27,5%
Middle East
Latin America
Asia
Africa
Europe
USA
EXPORT CREDIT
INSURANCE –
Geographical
Breakdown

22. 22

23. FINANCING SOLUTIONS
WORKING CAPITAL - Companies may cover the cash shortfalls through a flexible financing mechanism,
customized to their own financial situation.
INVESTMENT LOANS - Companies willing to develop their business may use investment loans to finance
the diversification of their activities, the replacement or upgrade of their production facilities, etc.
EXPORT FINANCING - Companies may cover the costs related to the production and shipment of goods or
services forexport.
FUNDING FOR:
23

24. CO-FINANCING LOANS
 May cover up to 100% of eligible and non-eligible expenditure (including VAT) related to the company’s own contribution
 Tenor - customized based on investment project, implementation schedule, reimbursement capacity
PRE-FINANCING LOANS
 May cover up to 100% of the funds received from the EU Funds Management Authority
 Tenor - up to 2 years
SOLUTIONS FOR PROJECTS
WITH SPE JV FUNDS
LETTERS OF COMFORT
 Binding
 Non-binding
LETTERS OF GUARANTEE
 May cover up to 90% of loans granted by
commercial banks to support EU-funded projects
implementation
24

25. DISCOUNTING FACILITIES
FACTORING
NVC FUND LLC SPE JV is able to issue guarantees so support the finances fully/partially, with or without regression, the commercial
invoices issued by exporters within the framework of a commercial contract/confirmed order, allowing them to cover temporary
shortfalls of cash between the invoicing time and the moment of payment.
Finances up to 100% of the nominal value of the invoices
Service at international standards - NVC EDI SPE can support the SPE JV (Arrangement for
Settlements of invoices within 72 hours from presentation) and convenient (when and a
guarantee is needed or to enhance material guarantees
Flexibility in using the funds - justification of the payment destination not necessary
Acces to information related to potential foreign clients through the foreign factoring agency
25

26. CREDIT INFORMATION
This service allows companies to mitigate the risks associated with their future business partners
before entering into a commercial agreement:
General information – company name, headquarters, registration number at the Trade Registry, fiscal
registration number, share capital, major shareholders, holdings in other companies, company history,
management, number of employees, etc
Financial reports – balance sheet, profit and loss account, payments behavior, payment incidents
Financial analysis based on financial reports – interpreting financial indicators, classification in risks categories
Recommendations on the reasonable ceilings up to which a company may conclude commercial transactions on
credit
26

27. CASH MANAGEMENT
NVC EDI SPE, and NVC EDI PLATFORM SPE cash management products and services are the optimal solution for
managing cash and, by covering the whole financial flow, offer the necessary support in making the most profitable
commercial investment decisions
CURRENT ACCOUNT- enables clients to perform intra and inter banking transactions, both in Local and other currencies,
cashing and payment of debt instruments, other payment instruments, currencies exchange operations,etc
PAYMENT/COLLECTION SOLUTIONS :
 Standard payment instruments: payment order (PO), promissory note (PN), bill of exchange, cheque, external
paymentorder
 Standingorders
 Cross-currencypayments/collections
 Multiplepayments
 AUTOMATIC OVERNIGHT DEPOSITS
 INTERNET BANKING
 OTHER SOLUTIONS: capital account, Escrow accounts, fax/email transmissions, payment reports
27

28. FINANCIAL MARKETS OPERATIONS
The SPE JV is organizing an up to date information system to address customers
needs for carrying out real time business in the financial markets, competitive
calculations and financial risks management solutions through a wide range of
products:
FX MARKET - NVC EDI SPE, is organzing a divions to provide competitive quotations for pairs of currencies including Local as well as for pairs
of foreign currencies including:
Transactions with the settlement dateTODAY
Transactions with the settlement date SPOT (settlement T+2)
Client’s option to place FX orders at a limited exchange rate
DERIVATIVES: The SPE JV is organzing a divison to provide the following structures for protection against foreign exchange
risks: FORWARD TRANSACTIONS (settlement >T+2)
for the due dates indicated by the client SWAP TRANSACTIONS
MONEY MARKET: The SPE JV is organzing a divison Standard and non – standard period deposits (in order to place a cash excess clients may
constitute deposits with preferential rates, in Local or other currencies, for amounts higher than 100,000 Local,50.000
EUR/USD)
Automatic Overnight – option of having an overnight deposit automatically with preferential interest rates (minimal amount
100.000 Local, 50.000 EUR or USD)
28

29. NVC FUND LLC Partners
Agency Products Designed To Compliment
International Surety Business
&
Financial Guarantees
29

30. INDEX
30
Products and Services
NVC FUND LLC
Case By Case Discussion
1
2
3
4
Surety Bond
Financial Guarantees
5

31. A Surety Bond is a contract/agreement among at least three parties:
 The Beneficiary/Project Owner - the party which is the recipient of the
contractual obligation
 The Principal/Contractor - the primary party which has responsibility to
perform the contractual obligation
 The Surety - which assures the obligee that the Principal can perform the task
SURETY BOND: DEFINITION

32. SURETY: CYCLE OF THE
PROJECT AND REQUIRED
BONDS
Tender Bid
Contract
Award
Execution
Provisional
Taking Over
Final
Taking
Over
• Bid Bond • Advance Payment Bond
• Performance Bond
• Retention Money Bond
• Warranty/
Maintenance Bond
 Insurance tools to guarantee the execution of contractual obligations: Surety

33. Repayment of
retention money
paid in advanceon
the basis of the
progress of works
according to the
terms of the
Contract
Adequate
performance for a
specified time
period following
the execution of
the Contract
Satisfactory
execution of the
Contract
Repayment of any
sum advanced
under or for the
purpose of the
Contract
SURETY: TYPES OF BONDS
QUOTATION SERVICE BY NVC EDI SPE
Failure to enter into
the contract or to
provide
performance or
other bonds
pursuant to the
tender.
Risk
Coverage
% of Contract Up to 5% Up to 30% Up to 20% Up to 10% Up to 10%
Money
Retention Bond
Performance
Bond
Maintenance
Bond
Advance
Payment Bond
failure to perform
Validity
Bid Bond
Until Contract
Award
Until Provisional
TakingOver
Until Provisional
TakingOver
Until Final
TakingOver
Until Final
TakingOver
Nature of Risk
33

34. ELIGIBLE
CONTRACTORS
34
NVC FUND LLC
Support is available to prequalified companies
 Foreign branches/subsidiaries
 Joint Ventures participated
 Foreign companies involved in strategic projects

35. PRODUCTS AND SERVICES
International Surety Activities Only Where Authorized
Our support to International exporters in the Surety Business is developed in three forms:
(i) counter guaranteeing the International Commercial Creditors issuing the
contractual bonds
(ii) counter guaranteeing the local Commercial Creditors /sureties issuing the
(Iii) direct issuance of Surety Bonds*: ICC Rules 758
35

36. Counter Guarantee Policy features
Policy Issuance
COUNTER GUARANTEE
FOR CREDITOR
(INSURANCE POLICY)
International
Creditor
International
Company
Beneficiaries: International Commercial Creditors
issuing bonds on request of the International company
(and/orits foreign subsidiaries)
Risk sharing: up to 70% of the bond value (potential
increase of up to 100% on acase- by-case basis). Pari-
passu with the bankon all the collaterals and on the
Indemnity Agreement (Indemnity letter between the
exporter and the bank)
NVC FUND LLC remuneration: NVC FUND LLC is
“Risk/Price taker”: pro - rata share with theremuneration
charged by the bank. No additional NVC FUND LLC fees will
be included
Local Creditor
Beneficiary
Counter Guarantee
Payment
Works/Goods
Services
Issuance of
Guarantee
Request of
Guarantee
36

37. Counter Guarantees to local
Commercial Creditors
COUNTER GUARANTEE
TO LOCAL CREDITORS
Beneficiaries: Local Commercial Creditors issuing
bonds in favor of the Beneficiary as counterparts to
International Companies
NVC FUND LLC cover: up to 100% of the bond
value; first
demand guarantee under URDG458/758
NVC FUND LLC remuneration: NVC FUND LLC is
“Price maker”: bond remuneration calculated on the
amount covered by NVC FUND LLC and to be
negotiated with the International Company
Fronting fee: to be agreed with the Local Bank
Indemnity Agreement: between NVC FUND LLC
andthe International Company
Guaranteeissuance
request
GuaranteeIssuance
Works/Goods/Services
Payment
Beneficiary
International
Company
Local Creditor
Counter Guarantee
NVC FUND LLC
37

38. BENEFITS FOR COMMERCIAL CREDITORS
 The NVC FUND LLC cover for the Commercial Creditors on the surety business
is a first demand unconditional and irrevocable guarantee
 Commercial Creditors’ & Banking Capital Requirements: Under Basel II NVC
FUND LLC is zero risk weighted, being our guarantee fully backed by the
International Government (“sovereign guarantee”)
 NVC FUND LLC support increases the capacity of the Guarantor for the
Eligible Contractors
38

39. Beneficiaries: Foreign Companies as counterparties
of International Enterprises
Eligible contractors: International Companies
and/or their foreignsubsidiaries
NVC FUND LLC cover: up to 100% of the bond
requested; first demand guaranteeunder URDG 758
NVC FUND LLC remuneration: NVC FUND LLC is “Price
maker”: bond remuneration calculated on the amount
covered by NVC FUND LLC and to be negotiated with
the International Company
Indemnity Agreement: between NVC FUND LLC and
the International Company
Request of
Guarantee
Works/Goods/
Services
Payment
Beneficiary
Pre-
Qualified
Company
DIRECT ISSUANCE TO BENEFICIARY
Direct Issuance
Option Available if NVC FUND LLC is accepted by the beneficiary as the issuing company
Direct issuance
NVC FUND LLC
39

40. Counter Guarantee /
Reinsurance to the sureties
Beneficiaries: Sureties issuing bondsin favor of
Foreign Companies as counterparts to
International companies
NVC FUND LLC cover: up to 100% of the bond
value
NVC FUND LLC Remuneration: NVC FUND
LLC is “Price maker”: quoted by NVC FUND
LLC and agreed with the International
company
Fronting Fee: to be agreed withthe Surety
Indemnity Agreement : between NVC FUND LLC
and the International company
Request of
Guarantee
Works/Goods/
Services
Payment
Beneficiary International
Company
COUNTER GUARANTEEING THE SURETIES
Issuance of
Guarantee
Surety
Counter Guarantee/
Reinsurance NVC FUND LLC
40

41. COUNTER GUARANTEEING THE SURETIES
Form of cover
Reinsurance: based on a Treaty between NVC FUND LLC and the Surety or based
on a reinsurance contract ad hoc;
Counterguarantee: first demand unconditional guarantee based on international
standard (URDG 758) and negotiated case by case
Benefits
NVC FUND LLC intervention can facilitate the issuance of local guarantees for International
exporters in “difficult” countries/markets where NVC FUND LLC cannot issue directly the
bonds
41

42. Required Documents
 Annual Consolidated financial statements of the Exporter and Interim Financial results
(last two years)
 General description of the project
 Cash flow of the contract
 Texts of the bonds to be issued either by the bank or by NVC EDI SPE
 Commercial Contract
 Technical project documentation (for large and complex projects)
DUE DILIGENCE
42

43. NVC FUND LLC
 Variables
 credit rating of the counterparty
 Tenor of the bond
 Counterguarantee (Insurance Policy)
 NVC FUND LLC shares pro-quota the risk fee that the bank charges
 NVC FUND LLC decides on a case by case basis whether or not to
yield a management fee to the bank
 Direct Issue
 NVC FUND LLC defines and negotiates with the Exporter the fees
to be applied based upon the above mentioned variables
PRICING
43

44. FINANCIAL GUARANTEES
FOR SME’S AND LARGE CORPORATIONS
44
We Facilitate Access To Credit By Issuing Customized Guarantees To Qualified
Lenders Who Commit To Funding SME’s & Corporate Concerns
Easier access to credit
 For SMEs: insurance cover for funding of activities to promote growth in international
markets granted under framework agreements with leading financialintermediaries
 For Large Corporations: insurance cover for loans earmarked for specific investments
abroad or to cover requirements for working capital in connection with international contracts
Advantages for the company that receives the loan
 Availability of favourable credit terms
 Access to loans with longer payment schedules

45. Structure
International corporates and /or their Foreign Subsidiaries/Affiliates in search of financing for strategic investments
abroad, namely: (I) M&A, JVs, setting up of new production units as well as new subsidiaries (Trade Related & Cross
Border Investment Facilities) and (II) working capital needs (Pre- Shipment) for exports and civil works abroad.
• First demand guarantee in favour of the funding bank
• Risk participation with the funding bank, on a % to be agreed, against non-payment risk
• Freeing up borrowers credit lines
• Participation Fee paid by the funding bank to NVC FUND LLC on an up front / running basis
Guarantee
Funding
International related
business
International entities
and /or their foreign
subsidiaries
Creditors
Target Clients
Main Features
Guarantee
Time1
Time 2
Time n
International related
business
Commercial
Creditors
Working Capitalfinancing
(I) Cross Border Invest. Facility (II) Pre – Shipment
Capital
Markets
Funding
INTERNATIONALIZATION:
CROSS BORDER INV. AND PRE-SHIPMENT FACILITIES
45
International entities
NVC Platform

46. HOW A DOCUMENTARY LETTER OF CREDIT IS CONFIRMED
Applicant (Buyer)
Contract
Issuing Bank
1
2 Letter of Credit
Application
3
Letter of Credit
Issued via SWIFT
4
Confirming Bank
Beneficiary
(Seller)
Confirming Bank
Irrevocably bound to honour
beneficiaries complying
documents.
Assumes Issuing Bank risk
Letter of Credit
Advised
&
Confirmed
46

47. DOCUMENTARY LETTER OF CREDIT – “SILENT”
CONFIRMATION
PURCHASING THE BENEFICIARIES DOCUMENTS
Advising Bank
“Silent Confirmer”
Beneficiary
(Seller)
“Silent” Confirming Bank:
Commits to honor beneficiaries complying documents by
direct arrangement detailing assumed risks.
Not requested by Issuing Bank to add
confirmation.
Issuing Bank is not made aware of this
arrangement.
$
Issuing Bank
47

48. PRIVATE LABEL LETTER OF CREDIT - ISSUANCE
Issuer
(buyer)
Pass-thru bank
New York
Advising Bank
Asia
Beneficiary
(seller)
1 Contract
2
Letter of Credit
Letter of credit
3 passed thru via
SWIFT MT 710
4
Letter of credit
advised
48

49. Supplier
Purchase Order
Goods Delivered
Day 2 Day 30 Day 60
Payment Terms
Produce & Ship
Goods
Approved
Payables File
Notification of
Maturity date
Discount
Request
Process
Request
Debit Settlement
Payment
Invoice
1
2
3
4 5
6
8 Discounted
Payment
9
Buyer
Day 1
Day 60
Day 30
Trade Value Chain
Principal
FINANCIAL SUPPLY CHAIN SOLUTION – SUPPLIER ADVANCED FUNDS
FSC
7
49

50. “TRADITIONAL” METHODS OF SETTLING TRADE
FINANCE TRANSACTIONS
Seller
Buyer
LC Advising
Bank
LC Issuing
Bank
Document
s
Documents
Document
s
Advic
e
Applicatio
n
Issuance
Payment
Letter of
Credit
Bank services based on paper
document processing
ICC Rules Based
Bank Payment Obligation
Seller
Buyer
LC Advising
Bank
LC Advising
Bank
Document
s
Contract
Document
s
Advic
e
Letter
of
Credit
Advice of LC
Payment
Bank services based on paper
document processing
ICC Rules Based
Buyer Payment Obligation
Seller
Buyer
LC Advising
Bank
LC Issuing
Bank
Document
s
Contract
Documents
Document
s
Advic
e
Applicatio
n
Issuance
Payment
Electronic
Letter of
Credit
Bank services based on electronic
document processing
ICC Rules Based
Bank Payment Obligation
Contract
Goods Goods
“Private
Label”
Letter of
Credit
Documents
Goods
50

51. METHODS OF SETTLING
TRADE FINANCE
TRANSACTIONS
Seller
Buyer
Seller’s
Bank
Buyer’s
Bank
Payment
Open
Account No
Documents
Bank payment processing
services .
No ICC Rules Subject to arrangement
Buyer Payment Obligation
Data
Seller
Buyer
Document
s
Contract
LC Issuing
Bank
Documents
LCAdvising
Bank
Document
s
Payment
Bank payment services based on limited paper
document processing.
No ICC Rules Subject to Arrangement
Buyer Payment Obligation
Contract
Docs / Goods
Goods
Open
Account
With
Documents
51

52. BANK PAYMENT OBLIGATION “BPO” –
COMBINING THE BEST OF ALL WORLDS (?)
Seller
Buyer
LC Advising
Bank
LC Issuing
Bank
Documents
Contract
Documents
Documents
Advice
Application
Issuance
Payment
Letter of
Credit
Bank services based on paper
document processing
Bank Payment Obligation
Seller
Buyer
Seller’s
Bank
Buyer’s
Bank
Payment
Open
Account
Bank services limited to payment
processing
Buyer Payment Obligation
Seller
Buyer
BPO
Recipient
Bank
BPO Obligor
Bank
Docs / Goods
Payment
Bank
Payment
Obligation
Bank services based on electronic
trade data exchange Bank Payment
Obligation
Data
Data
Data
Contract Contract
Docs / Goods
Data
52

53. BANK PAYMENT OBLIGATION (BPO)
• What is it?
• A BPO is an irrevocable undertaking given by an Obligor bank (typically the buyer’s
bank) to a Recipient bank (the seller’s bank) to pay a specified amount on an agreed
date under the condition of a successful electronic matching of data according to an
industry-wide set of rules adopted by the ICC.
• BPO constitutes a legally binding, valid and enforceable payment obligation of the
Obligor Bank to the Recipient Bank under the appropriate standard of law, enforceable
in accordance with its terms.
• BPO is a technology independent instrument based on ISO 20022 XML that can be used
on any open Trade Matching Application (TMA) such as the SWIFT Trade Service Utility
platform (TSU).
53

54. BANK PAYMENT OBLIGATION (BPO)
• How does it work?
• Only the data required to assess the financing risk is extracted from existing
documentation – Purchase order, Commercial invoice, Transport, Insurance
Certificate
• Importer and Exporter need to agree on the use of a BPO in their commercial
agreement. Both will establish the BPO terms and conditions in the bilateral
agreement with their own bank.
• Obligor and Recipient banks rely on the ICC URBPO and the contractual
agreement of the Transaction Matching platform, such as TSU Service
Description.
54

55. Seller
Buyer
BPO
Obligor
Bank
BPO
Recipient
Bank
CARRIERS
Delivery
of goods
1 Purchase order
Transport and
invoice data
5
6
Transport and
invoice data
(match report)
7
Confirm payment is due
on agreed date
9 Transfer funds at maturity
Transaction
2
Request BPO
based on PO
3
‘Confirm’
BPO
4 Shipment
BPO is
Application
Documents sent
directly to the
client
Invoice and shipping documents
8
* Bank Payment Obligation (BPO)
55

56. …….is a written undertaking given by a Bank or Guarantor to the Beneficiary - on the instruction of its Applicant or on its
own behalf - to pay the Beneficiary a stated amount of money – within a defined period of time – against certain rules and
articles…..
— This irrevocable undertaking is contingent upon the Beneficiary’s documentary compliance of the terms and
conditions stated in the Letter of Credit or Guarantee
— The instrument is separate from and independent of the underlying contract.
— The Bank or Guarantor will not investigate the underlying facts of the transaction – e.g. whether or not there was a
default or contract breach.
— References to underlying purpose and references to related agreements and contracts are “for information only”.
— Assures the beneficiary of the performance of their customer's obligation
— Bank / Guarantor stands behind monetary obligations of its client or commits itself to make payment
— Bank / Guarantor strengthens the credit worthiness of its client or commits itself to make payment
— Documents presented under a Standby/Guarantee lack any intrinsic value because they are usually a simple
certification to satisfy payment
— Capital adequacy reserves -
— Thus more expensive to issue and maintain than a documentary (commercial) letter of credit
Choice of governing rules:
— UCP 500 – UCP 600 – ISP 98 – URDG 758
— UCC Article 5 (US regional law)
STANDBY LETTER OF CREDIT
/ GUARANTEE….
56

57. FOREIGN GUARANTEE ISSUED -
SUPPORTED BY OUR GUARANTEE
Guarantee Requested
ToSupport (Foreign)
Financial Arrangement
Issuing Bank
Counter Guarantee Issued
in Favor of Our Foreign Correspondent / Branch
Guarantee Issued Trading Partner
Cross border business arrangement
Business can be conducted
Our Client
2
1
Guarantee on both sides
57

58. DISCLAIMER
This presentation has been prepared solely for information purposes and should not be
used or considered as an offer to sell or a solicitation of an offer to buy any
insurance/financial instrument mentioned in it.
The information contained herein has been obtained from sources believed to be reliable
or has been prepared on the basis of a number of assumptions which may prove to be
incorrect and, accordingly, NVC FUND LLC does not represent or warrant that the
information is accurate and complete.
58