50MT Gold Bullion in HSBC Hong Kong (SKR)

LBMA discount
9% to buyer
1% to seller side
1% to buyer side

Transaction Process 50 metric tons of gold of HSBC Hong Kong (under SKR)

1. Issuance of ICPO

The buyer will send a formal Irrevocable Corporate Purchase Order (ICPO) to the seller, expressing their intention to purchase 50 metric tons of gold under SKR terms.

2. Submission of Proof of Funds (POF)

The buyer will be required to submit proof of financial readiness via interbank correspondence (BCL/RWA or a valid asset certificate).

This proof will be sent from the buyer's bank (e.g., HSBC London or Hong Kong) to the seller's designated bank (e.g., Siam Commercial Bank - SCB Thailand) for verification. (please follow the buyer BCL draft)

3. Signing of the Sales and Purchase Agreement (SPA)

The seller will issue a Sales and Purchase Agreement (SPA) for the buyer's consideration. Upon mutual agreement, the SPA will be signed.

This agreement will include details of the Proof of Product (POP), such as the SKR certificate number, issuing institution, title documents, and custody documents.

4. Funds Verification and Site Inspection (TTM)

Once the POF is confirmed, A Tabletop Meeting (TTM) will be held at HSBC Hong Kong, attended by:

Authorized Banking Officer of the Buyer

The Buyer (Exit Buyer)

The Seller's Banking Officer from the Bank of Thailand

The Signatory or Authorized Representative of SKR

During the TTM, documents related to SKR (50 metric tons of gold held at HSBC Hong Kong) will be presented and reviewed, including title documents and power of sale.

5. Issuance of Financial Instruments

After completing the TTM review, the Buyer will issue one of the following financial instruments to the Seller:

A documentary Letter of Credit (DLC) (valid for 90 days) covering the entire value of 50 metric tons of gold.

A Letter of Credit (LC) payable at sight (valid for 90 days) covering the entire value of 50 metric tons of gold.

6. Payment and Transfer of Title

The Buyer will make full payment via MT103 Swift transfer for 50 metric tons of gold. Upon confirmation of the funds' receipt, the Seller will immediately transfer legal title and ownership of the SKR gold to the Buyer.

7. Commission Payment

The Seller shall pay all commissions to the intermediary in accordance with the terms and conditions set out in the IMFPA and/or the fully executed NCNDA contract.