Let’s take a look at a conversation between a source and Mr James Jones. He seems so confident of the instrument from Alfa Bank which is 2 BGs of 101M Euros. Apparently, it somehow got lost in the system of Xxxx bank and so no funding up till this period of time. Which sources have mention more than a dozen times to him that instruments really do not work here especially in the Singapore market.
Source : But James no matter what name – we may not be able to draw on it or use it if the banks have no lines for Alfa. – which will be prob be the case
James Jones – Once in place you can approached commodity traders and the profile changes because your portfolio is enhance with instrument, I am also working angles with a petroleum reseller from Canada who expressed interest in payment a rental of 5M per month.
Source : Yes we will get it in place but monetizing it will take time. So as per our spreadsheet schedule – will be prob stage / tranche 3
And the big talk of leasing the instrument to some petroleum company seems even more like a joke now. Payment of USD5M per month for the leasing of the instrument seems like a really big talk. Which he obviously failed to deliver. Besides Singapore is really really strict and very wary of bank instruments. Since most of it in the market mostly turn out to be fakes.
This also led to their setting up of Aleph Trading Group here in Singapore to hopefully able to monetized instruments. However, which banks here would allowed a $2 company to do it. ZERO. With no track record and no transaction history what they wished for is mainly fat hope. Most companies need to have at least a solid track record of at least USD50- USD100m in revenue per year to monetized instrument of this size. Before the bank even allow clearance. So what if the instrument is cash-backed. The bank doesn’t care, what the banks wants here in Cash not instrument. There is plenty of instruments floating the market that claims that they are cash-backed. Yet they are still not able to cash. How naive is that ?
As naive as he is, he should have known by now. It is clearly not impossible for this to work in the context of the Asia Region especially Singapore.
Since they do not listen to the advised of the sources who are mostly ex-investment bankers. Then that’s what they get for getting their names published on the net. Besides, we heard that he being 29years in the industry does not even know how to properly craft an SBLC. Another joke. Will probably put that up online soon. Most people in this business for this long would have know how to craft an SBLC by now of course with the benefits mainly to the beneficiary bank. Giving instructions that they are able to retrieve the funds from the holding bank should the borrower default.