"The following deliverables outline a modern, reputation-backed private credit instrument designed specifically for Liga Group. It utilizes institutional-grade payment structures to bridge the gap between Indonesian operations and global liquidity."

1. Sample Credit Note Term Sheet

Reputation-Backed Private Credit Instrument

Issuer	Liga Group Operating Company (Indonesia) Payment & Security Structuring via Offshore SPV (Georgia)
Instrument	Senior Secured Reputation-Backed Credit Note
Purpose of Financing	Working capital, expansion, and balance-sheet optimization without equity dilution.
Principal & Settlement	USD [●] equivalent (denominated and settled in crypto) USD-linked stablecoin (e.g., USDC) On-chain settlement; off-chain contractual obligation
Issue Price	85–92% of face value (Discounted issuance) Discount reflects enforcement risk and establishes target investor yield.
Maturity & Coupon	24–36 Months 8–10% Per Annum (Payable Quarterly) Targeted Investor IRR: 15–20%
Security & Support	Hypothecation of receivables to Georgia SPV Contractual payment priority over equity distributions Negative pledge on senior debt Optional reserve account (3–6 months interest)
Governing Law	English law or New York law Arbitration: London or Singapore
Strategic Feature	Yield Ratchet Mechanism: Issuer eligible for subsequent tranches at reduced discount upon successful servicing, explicitly linking historical performance to a declining cost of capital.

Why This Works in One Line:

"This structure prices enforcement risk instead of pretending it doesn’t exist—and converts repayment history into declining cost of capital."

2. Historical Note

Reputation as Enforcement: The Rothschild Model

The modern concept of reputation-backed credit is not theoretical—it is historically proven. As documented by The House of Rothschild by Niall Ferguson, early 19th-century sovereign debt markets functioned without reliable legal enforcement.

Access vs. Courts

Future access to capital replaced legal courts as the primary enforcement mechanism.

The Penalty

Default did not trigger lawsuits—it triggered total exclusion from the global financial network.

Intangible Asset

Reputation became the collateral. Borrowers altered behavior to preserve their credibility.

New or weak sovereigns—such as post-independence Belgium—sought Rothschild underwriting precisely because it signaled credibility to the market. Sophisticated creditors earned returns not only from coupons, but from price appreciation as the issuer's credibility improved.

"In weak-enforcement environments, credit markets succeed when reputation, transparency, and repeat interaction substitute for legal force."

This is the historical logic behind discounted issuance, disciplined repayment, and declining borrowing costs over time—the same logic embedded in the proposed Liga note structure.

Positioning to Liga

“This is not about cheap capital today—it is about building a reputation that permanently lowers the cost of capital tomorrow, using a model that has worked for over 200 years.”

Next Steps

Nicholas Levenstein & Company is prepared to advance this proposal through any of the following actions: