Use of Instruments

AOL INC. LTD provides access to bank-grade financial instruments strictly for credit enhancement purposes, in full compliance with ISO 15022 messaging standards and aligned with international banking regulations. These instruments — including Bonds, Medium Term Notes (MTN), Bank Guarantees (BG), and Standby Letters of Credit (SBLC) — are leased and not sold, and are assigned to legal entities (not banks) via Swift MT760.

1. Credit Enhancement

Leased financial instruments can be used to enhance a borrower's credit profile by temporarily increasing their asset base. This enhancement is notional — the borrower does not gain ownership of the instrument — but the instrument appears on the balance sheet and can serve as a temporary asset to support third-party due diligence, improve creditworthiness, and access certain financing mechanisms.

2. Balance Sheet Optimization

Corporations may leverage leased instruments to:

• Strengthen their capital adequacy ratio (CAR);
• Improve solvency metrics before M&A or IPO operations;
• Demonstrate enhanced financial stability in front of lenders, regulatory bodies, or rating agencies;
• Satisfy requirements related to covenants or financial stress tests.

The temporary appearance of a high-value financial instrument on the balance sheet may significantly influence equity-to-debt and liquidity ratios, opening the door to improved financial ratings or increased borrowing capacity.

3. Project Funding Support

Although leased instruments are non-transferable and cannot be pledged directly (if Performance Bond not active), they may serve to:

• Demonstrate to lenders the seriousness and readiness of the project sponsor;
• Provide the perceived security required by investors or banks to initiate a funding dialogue;
• Be included in a documented project financing package, helping meet minimum collateral thresholds.

It is important to note that monetization of the instrument is not part of AOL INC. LTD's activity, and any use for such purpose must be independently negotiated by the borrower with third-party monetizers or financial entities.

4. Trading Platform Access (Third-Party Use)

Some borrowers may use leased instruments to gain access to high-yield private trading programs (PPP). While AOL INC. LTD does not offer or recommend such platforms, leased MTNs or BGs may serve as qualifying instruments for submission to platform operators, where permitted by applicable laws and program rules.

5. Corporate Structuring and International Operations

Bank instruments may also be used as:

• Proof of fund or asset declaration during international tenders or trade operations;
• Financial support for cross-border M&A transactions;
• Temporary reinforcement of liquidity for banking relationship purposes, particularly with private banks or investment boutiques requiring confirmation of asset control.