Question

you are the office manager of a small financial credit business. An international applicant that you never met before has qulified for funding but he is required to setup/procure SPV and Green Bond Guarantee based on your company and government policy in your country accordingly. Write an approval letter within a letterhead congratulating him for the approval and requesting the foreign company to setup an SPV with guarantee that they will receive the funding upon completion and full compliance.

Answer 1

{Your Name }

{Street Address}

{City,State ZIP code}

{Phone number}

{Email}

{Date}

{Name of recipient}

{Title}

{Company Name}

{Street Address}

{City,State ZIP code}

Dear {Recipient}

We are pleased to inform you that your application for credit has been approved. Your account number and details will be sent to you through future correspondence mails.

Your allowed credit limit will be {amount} and the interest rate will be {interest rate %}on the total amount. The detailed terms and conditions of the credit will be sent to you on clearance of further procedures.

Please note that to complete the procedures you will be required to setup an SPV(Special Purpose Vehicle) with a green bond guarantee that the funds will be received on completion and full compliance of the procedures. This is in line with sound financial practices of our company and legal requirements of the government needed from international businesses.

In case of any queries you may contact me through phone or email or our customer credit officer. Please let us know if you need any further assistance regarding this matter.

Sincerely,

[Name]

[Title]

Note to student- An SPV means a Special Purpose Vehicles, which is a separate entity created by the company to protect itself from financial risk.

Green bond guarantee is an arrangement where a guarantee is given stating that a third party will bear the interest and payment if the issuing party defaults on the agreement due to reasons such as bankruptcy or insolvency.