Product description

• Short term discount instrument used in the course of international trade.
• Short term discount note drawn on and accepted by banks which are obliged to pay the face value on maturity.

Product features

• Short term negotiable discount note
• Bank guarantees on behalf of buyer to pay seller by accepting time draft
• Typical tenor usually six months
• Interest usually paid upfront except otherwise agreed
• Used to fund trade transactions
• Typical bearer security i.e. bearer of security at time of maturity redeems amount
• Can be held till maturity or sold at a discount before maturity
• Mostly regarded as promissory note of accepting bank

Your benefits

• Considered very safe assets because it allows trader to substitute a banks credit standing for its own.
• Used widely in international trade where the creditworthiness of one trader is unknown to the trading partner
• Beneficial as both an asset and a liability

The Requirements

Existing Clients

• Letter expressing desire to invest in BA and authority to debit account thereafter
• Custodial authority duly signed by client
• Copy of physical bill duly signed by investor and reflecting issuers name
• Duly signed investment contract confirmation letter showing issuers name.
• Filled KYC form

New Clients

• Account opening form with passport attached and means of identification
• Cheque or lodgment slip
• Custodial authority duly signed by client
• Copy of physical bill duly signed by investor and reflecting issuers name
• Duly signed investment contract confirmation letter showing issuers name.
• Filled KYC form

Application process

• You initiate request and comply with requirements above
• Account officer verifies documents and forwards to treasury
• Treasury raises deal slip and forwards to Trops
• Your account is debited in line with deal slip instructions
• Contract certificates are generated